Last month it was announced that the privately owned electric companies were to add a sum to our bills to modernise the electricity supply systems . The state of the infrastructure was known when these foreign companies bought the assets from the government and so again we are donating funds to the shareholders as improved infrastructure means the share value increases.
Now our neighbours need new terracing which when completed will bring the ground up to current approved standards. Again as the previous cases, they are going to the customers for the money to finance this project, safe guarding the shareholders funds by increasing the capital asset at no cost to themselves.
In the past, when businesses needed funds to finance projects they required, they adopted rights issues and occasionally scrip issues whereby shareholders bought shares in the company providing the funds for the required work but diluting the value of the shareholding of those who did not participate.
A couple of years ago Batley followed this old established practice and raised funds for essential work by selling shares in the Rugby club which leases and is responsible for the ground maintenance. This method does cause a minor hemorrhage of funds as shareholder meetings are held and free drinks are issued but it was the honest way of raising funds.
So should Batley adopt the seemingly modern practice of fleecing the customer and improving the assets and therefore the income of just three or four shareholders or continue in the old fashioned way.
Edited by Doc M, 06 January 2013 - 09:28 AM.