THE board of Shenzhen-listed China Vanke Co has bowed to demands of minority shareholders to change its payout proposal by giving out more bonus issues and less cash. Vanke has become the latest to fall victim in the increasingly tougher stand being taken by minorities at shareholders meetings as the falling market saw the value of investments shrink. Bao An Enterprise was the first Shenzhen target of such a rebellion at its shareholders meeting this year. This was followed by shareholders of Shenzhen Gintian Industry and Shenzhen Konka Electronics reportedly making similar demands. In what is becoming the expected in shareholders meetings in China, Vanke's revised offers were made after minorities rejected a board plan for a share issue and cash payout. However, shareholders demanded more free stock during the four-hour meeting in Shenzhen. Vanke is the subject of a controversy which erupted late in March, involving Shenzhen brokerage J & A Securities. Shareholders were seen as taking the excuse of the brokerage revolt to challenge the board on daily operations and information disclosure. A Mr Chen, with only 5,750 shares, said he had faced thousands of yuan in paper losses from investment in Vanke. Yet, apart from the payout proposal, he could think of nothing that he felt was worthwhile being angry about. The board of Vanke originally proposed a two-for-10 bonus issue, a cash dividend of 2.5 yuan per 10 shares and 0.5 yuan per 10 shares for retained earnings. But shareholders demanded for a change. After a 20-minutes break, the board tabled a revised offer of 3.5-for-10 bonus issue and a cash dividend of 1.5 yuan per 10 shares. Holders of B share will receive payout in proportion to B shares issued in April last year. While some shareholders did not appear happy with the revised offer, 79.44 per cent of the proxies representing the company's issued share capital voted in favour of the offer. Company chairman Wang Shi said the change was made because the board wished to meet shareholders demand where possible. Mainland shareholders, who invest for speculative reasons, tend to favour bonus issues instead of cash. Most fear that large cash dividends payout will result in a plunge in the share price the next day. Dilution of earnings resulting from bonus issues is of little concern, as most are short-term speculators.