Fingerprint Cards’ Annual General Meeting was held this week, and the company has now announced some new developments from the meeting. In addition to numerous determinations regarding renumeration for company executives and board members, the AGM decided on important shareholding matters.
For one, the AGM determined that no dividends would be paid to shareholders. This contrasts somewhat with speculation from earlier this week over potential rewards for shareholders after the company’s very successful fiscal year in 2015, but the AGM also decided that the Board of Directors would limit FPC’s own share holding to 10 percent or under until the next AGM, and that the Board could issue up to 25,000,000 shares with preferential rights to shareholders during that same period, with the aim of facilitating “the continued expansion and development of the Company, its market and products.”
Those moves hint at potential future benefits for shareholders, particularly if FPC is able to meet the 35 percent operating margin expected for the 2016-2018 period. And as FPC delves into smart cards and the automotive sector, there is the potential for considerable payoffs if those areas prove as lucrative as the mobile biometrics market was in 2015.
May 6, 2016 – by Alex Perala