Majority shareholders must remember that their junior partners will not always be their best allies. Although the minority shareholders may initially appear to be highly cooperative, this can change rapidly for any number of reasons (change in business economic conditions, change in personal attitudes, change in personal financial situation, differences in the corporation’s business direction, failure to make further contributions to the advance of the business, impeding the corporation from obtaining further outside investment, etc.). As such, majority shareholder will want to exercise his or her control over the corporation in a pre-determined manner, which is best undertaken with a well written shareholders agreement – Shareholder Lawyer
The promulgation by Antigua Minister of Tourism John Maginley that LIAT will not be relocated to Barbados must be interpreted for what it is, an ignorant statement to impress would be voters with a general election looming. The statement exposes the corn beef politics an Antiguan politician is prepared to engage even if the statement qualifies him as most ignorant to onlookers.
Maginley obviously felt he had to respond to and equally strong message which was delivered by Barbados Minister of Tourism Richard Sealy who promised that some LIAT operations will be relocated to Barbados in the coming months. Although Sealy stopped short of confirming if his government will push to relocate LIAT to Barbados in the near future, he confirmed that Barbados will be undergoing the process to acquire Category I status which is a requirement to satisfy FAA International Aviation Safety Assessment Scheme (IASA).
One year ago Barbados as the majority shareholder in LIAT co-signed a loan agreement with Antigua, St. Vincent and Dominica for USD65 millions dollars out of which Barbados guaranteed USD31 millions dollars. Let Magindley know this gives the Barbados government the right to heavily influence decisions by LIAT in the interest of Barbados BUT recognizing that all shareholders must be strategically aligned in their interest of the airline. Magindley’s retort only serves to muddy the issues for LIAT at a time when the region’s only carrier is battling to remain solvent. BU holds no brief for Minister Sealy who history will recall as one of the most inept tourism ministers Barbados has had but we give him credit for responding to Prime Minister Balwin Spencer’s boast that he will not be sending home civil servants like Barbados has done. Imagine Magindley suggesting that Sealy’s statement must be taken as meddling in the affairs of Antigua yet Spencer made a similar statement about Barbados and what?
Magindley you have declared Antiqua has agreed to build a hanger with a 20 year plan. You are advised as a minority shareholder to gain assent from other shareholders; especially the majority shareholder BARBADOS.
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