A Consultation Paper for a shareholding scheme
Written by Editor Wednesday, 15 September 2010 13:43
(Continued from previous issue)
Mauritius News with its World Wide Web operation could offer all UK Mauritians the opportunity to link with other overseas Mauritians!
As far as the first generation of Mauritians in the UK is concerned we still have to fight for the right to vote in Mauritius as other nationals here vote at national elections in their own countries of origin. In this connection, the paper can help in the same way that we campaigned for dual nationality to be extended to all Mauritians and their children a few years ago until legislation was amended. As we have explained, the amendment was approved by the National Assembly (Parliament) in 1999, but governments, past and present, have turned down numerous requests. Yet, nationality is granted to people from other countries.
In short, Mauritius News has an important role to play for the older and the younger Mauritians in the UK.
Mauritius News in development
Mauritius News brings with it 26 years of continuous performance, 26 years of tenacity, consistency and persistence to survive and succeed.
The business has to go forward, and to recreate itself to take on board the new demands. The contents of the paper must cater for their needs as well as for the older generation.
Mauritius News as opposed to the DOT COM business
It was the craze and fashionable, a few years ago for people to invest millions of pounds in DOT COM businesses without asking for their track record or their balance sheet for the past three years as prescribed in textbooks. People invested purely on the speculation on what the DOT COM business would bring to them, in a domain that had not proved itself.
On the contrary, investors in Mauritius News will invest in a business which has been consolidating its foundation for the past 26 years, and which is ready to expand for better prospects. Investors will of course invest in the Mauritius News’s potential for expansion.
Mauritius News, a long term investment
There are two kinds of investment: short-term and long-term.
Short-term investment is for speculators playing the market. This means the speculators are not keen on dividends but want to realize immediate profit through the process of buying and selling. Unfortunately, this in itself is very risky because the stock and shares market fluctuates every minute. One minute their shares may be valuable, and the next minute they may have gone down in value.
Long-term investment is for those who wish to invest for the future. The immediate value of the shares does not worry them because, in the long run, a falling share market may pick up. Long-term investors are keen on dividends and are not in a hurry to sell. A well-intentioned company will in its long-term policy implement its projects to pay dividends to shareholders and increase the value of the shares in the process. Mauritius News falls within this long-term category.
Mauritius News projects
What does Mauritius News propose to do in its future programme to bring dividends to shareholders and improve the value of the shares, and to create more employment opportunities for the younger generation of Mauritians?
Mauritius News suggests diversification into other subsidiary activities to bring dividends to shareholders and improve the value of the shares, and to create employment opportunities for younger Mauritians who will the job market more and more restricted.
The following projects may be suggested for consideration:
a) Increase of the circulation by an appropriate promotion campaign and networking arrangement
b) Maximise advertising revenue
c) Maximise revenue from reintroduction of the Penfriends column
d) Capitalise on the website and e-commerce (to create an IT Department)
e) Create a Holiday Club to take readers on tours to various countries.
f) Set up a Mail Order business
g) Create a Mauritius Boutique
h) Set up a credit Union
i) Create a Housing Association for the Mauritian community.
j) Start a courier service to Mauritius
k) Organize a lottery for UK Mauritians
l) Initiate the financial services such as Insurance etc in collaboration with well-established insurance companies (acting as agents)
m) Endeavour to print the paper every fortnight
n) Creation of a charity (Friends of Mauritius News) to which £1 of every subscription to the paper will go towards the welfare of the aged (e.g. creation of an old people’s residential/ nursing home for Mauritians)
o) Organize fund-raising functions such as Mauritian fairs and social events which were frequently done in the past
p) As an ethnic minority organization applications to be made to various sources for funding such as government, the EU etc to provide training to young people to create employment opportunities which we are already doing in stead of allowing such bureaucracies like Business Links, Greater London Enterprise Board and others devouring the funds meant for ethnic minorities.
q) Set up a branch in Mauritius itself, for local printing and circulation of the paper.
The above proposals can only be put in place gradually as part of the company’s strategy, and appropriate staff provided as and when required.
Thus, it can be seen that the business can become a vehicle to generate a lot of side activities beneficial to the community.
Long-term view
Mauritius News must be considered as a business that will run well into the future with a long-term view. This is why it would be advisable to acquire shares in the name of the younger people.
It is a business with a future for the future.
The price of the share
The share has been priced at £3 each based on the goodwill generated for the past 26 years in creating the product, in creating the market for the product, the Goodwill as a business, in establishing the credibility and of the product, and in making it accepted by the community and the authorities. The fact that the paper has existed for so long is in itself an indication of its feasibility, its viability and its solid foundation.
The price of the share is also based on the potential of the business, its prospects to expand and develop further within the Mauritian community, and take on board the young Mauritians born in the UK for a better business awareness, and to develop the shareholding culture.
The future offers immense possibilities to develop the business into a consortium to diversify into other business activities for the benefit of shareholders in terms of dividends and the increase of the value of the share. (The fact that the founder has invested a lot of his personal money in the business is an indication of his confidence in its potential for development and expansion.)
Dividends
In the beginning the company will need the money for development.
In line with what major companies do, like BT, British Gas, Euro Tunnel etc when they first floated, dividend is not expected for the first few years so that profits may be ploughed back into the business to create capital for development. If dividends are paid immediately, the company will have no funds for its expansion programme.
On the other hand, the value is expected to go up as the company’s performance progresses, bearing in mind that the value of shares fluctuates all the time. The future performance of the company will play an important part in determining the value of the shares and the dividends to be paid.
Competition
Mauritius News is unique of its kind within the UK as a Mauritian community paper, and outside Mauritius generally. Competitors have come and gone. There is no serious challenge within the community here and elsewhere where Mauritians have settled. It is printed on newsprint, a material specific for printing of newspaper. It is not as heavy as photocopy paper or glossy paper which are more expensive in terms of postage as well.
The use of newsprint benefits from the economy of scale. This means that the more copies are printed the printing cost goes down for the additional copies. The postage also is less than that of glossy paper because of the lighter weight of the paper. In other words, Mauritius News can easily have a large run and a large circulation.
However, we must admit that local newspaper in Mauritius published on online has somewhat affected our subscription level among the older generation of UK Mauritians who are still at home with the French language. We are happy to know that the young UK Mauritians are more at home with English, their mother tongue. They are less likely to be concerned of what the politicians are doing in Mauritius, as reported in French in Mauritian newspapers.
On the other hand, it is the firm belief of the Company that full advantage should be taken of the New Technology to reach the young people via the Internet facilities, and to develop the e-commerce via the website marketing.
Therefore, the Mauritian newspapers from home published on the Internet do not offer any long-term competition. They do not affect our advertising revenue.
Shareholders’ responsibilities
Shareholders’ rights and responsibilities are laid down in Companies Law, but the following points are worth stressing as a matter of policy of Mauritius News for the good running of the business:
Shareholders will have the opportunity to express their opinions at the Shareholders Meetings and the Annual General Meeting (AGM) in respect of the policies of the company for efficiency and good housekeeping, and other relevant matters. They will even have a say in the appointment or election of future directors.
Shareholders will, however, have no claim to special treatment from the company. In the same way that all companies operate, shareholders have no right to interfere in the day-to-day management of the company.
Shareholders will not try to influence the political independence of the paper, or impose their political views.
Shareholders will not try to impose their own views on the editorial independence of the paper.
Shareholders cannot expect to influence the decision of the company in the recruitment of staff to give preference to any job applicant. They cannot expect any special concession with regard to subscription to Mauritius News and advertising in the paper.
Similar conditions will apply in respect of any future business to be run by the company.
Conclusion
Mauritius News proposes to embark on a great business adventure for the benefit of our community as a whole and to strengthen the relationship among us (the immigrants from the distant island of Mauritius) in the UK.
In implementing the projects (mentioned above) with the collaboration of the community, we shall be able to create job opportunities, and to provide training facilities to the young people undertaking media studies, and provide work experience in the other field of activities as well.
Mauritius News will initiate the business enterprise spirit among our youngsters and create among them the shareholding awareness, and shareholding culture that is foreign to many UK Mauritians at the moment.
Mauritius News already provides a uniting force within the community. As we know,
‘ Unity is Strength’ and strength commands respect.
