You have not mentioned the name of the company. However, in general IMO
AGM is a once-a-year event, and one may hold it in one’s own farmhouse purely as a matter of convenience. Note that most of the small companies are just glorified sole proprietorships, and there are a thousand ways in which the promoter can siphon off money if he wants to. Here, at least he is making a transparent disclosure. So, unless you find the amount paid is exorbitant, this should not be a problem.
You should see how much is the debt taken, in the context of its equity base and cash generation. A reasonable amount of debt is quite fine (in fact, even good) and it is not necessary that a company should become debt free before paying dividends.
| Subscribe To Our Free Newsletter |
