Diageo PLC (DEO ADR: $89.37) has a staggered board which protects management and the board from being accountable to shareholders by only allowing a few board members to be elected each year. That way it takes a few years to change a shareholder unfriendly board. Usually, managements that are afraid of their shareholders do this. As I do with all staggered boards, I voted against all three board members up for re-election this time. The three board members who are part of the staggered board up for election this year are: Ms. M Lilja, Mr. NC Rose, and Mr. PA Walker.

There are several other management sponsored resolutions about which I did not feel strongly except for one:

I voted against a management sponsored resolution titled: "Authority to make political donations". Quality companies focus on improving their products and better marketing, not on begging government for handouts. I don't want my company giving money out to corrupt politicians (in a legal manner of course), i would rather they either send the money to shareholders.

Sadly, Diageo has no shareholder sponsored resolutions.

Disclosure and Confessions: I own Diageo (DEO $89.37). It has performed well for me but now trades at the upper end of it's PE ratio and the ADR has gained greatly from drop in the U.S.. I am considering it for a sale in the near future if the price rises any more.

I am a fan of Diageo's products especially Guinness Stout and Harp Lager. If I must drink tequila, I think their Don Julio brand is just about the best one you can drink. I'm not much of a whiskey or other spirits drinker.

Some people will not own shares in alcohol companies because they believe them to be sin stocks. I do not believe this is the case for Alcohol companies as I am an enthusiastic consumer.

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