Request for Investing in Loblaw Companies Limited

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Table of Contents

Company’s Profile
Rights of a Shareholder
Other services to the public
References

I would like to give you brief summary concerning Loblaw Companies Limited and why it is beneficial for you to invest in the company. My reason for writing this memo is to persuade you to invest in Loblaw Companies Limited through presenting details about the company that make it stand out from the rest. I hope to achieve this through presenting details about the company’s profile, the relationship that exists between the company and the shareholders, the financial stability and growth of the company, and the relationship the company has established with the public.

Company’s Profile

The company started in 1956 and it deals with general merchandise. It is “Canada’s largest food retailer and a leading provider of drugstore, general merchandise and financial products and services” (Loblaw Companies Limited, 2011). The staff comprises of people who have vast knowledge in business and this has seen the company’s move to greater heights since its inception. The following is more information about the company.

Rights of a Shareholder

Voting

The greatest distinction that exists between the shareholders in our company from shareholders in other companies is the amount of knowledge they possess about the business. The shareholders are provided with the relevant yet adequate information about the company. Being a shareholder in this company, one has a right of voting. This is an indication that shareholders participate in the management of the company hence ensuring that proper staff is elected and that good decision are made. The shareholders, who are allowed to vote, are both registered and non-registered. The shareholders have a right to vote and appoint the directors and auditors of the firm respectively. Another important factor that distinguishes Loblaw companies Limited from other companies is that the shareholders are allowed to vote online in case they are unable to make it to the voting venue. The voting process is again free and fair with each shareholder entitled to one vote (Bebchuk, 2005)

Financial Background of Loblaw Companies Limited

Assets: Over $1,000,000,000

Dividends

The Dividend record for the month of October is as follows:

Common shares: $ 0.21 for every share payable on 1 October 2011 for every shareholder’s record as of 15 September 2011.
2^nd preference shares: first series will attract -$0.371875 for every share to be paid on 1 October 2011 based on shareholders’ share records as of 15 October 2011.

Robert A. Balcom, senior vice president on July 20, 2011, approved the above figures to be paid to investors in the firm (Bebchuk, 2005). This is indications that as the company grows shareholders’ dividends grow too. This represents a figure that is ever increasing since the company has invested in assets that continue to grow as time progresses. The company shares have to features that distinguish them from other shares in the market place.

Other services to the public

Loblaw Companies Limited is among the top one hundred companies that provides employment opportunities to the largest number of people in Canada. It is the only largest corporation that sales grocery in the country with branches spread throughout Canada.

In conclusion, investing in the company is the best decision an investor can make. The rate at which the company is growing is a force with which every investor wishes to reckon with. The management of the company is ranked highly and this is also evident from the results that are projected by the company.

References

Bebchuk, L. (2005). The Case for Increasing Shareholder Power. Harvard Law Review, 118, 833-836.

Loblaw Companies Limited. (2011). Second Quarter Report. Web.

Loblaw Companies Limited. (2011). Company Overview. Web.

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