30 May 2018

Activism in May


Myer v Premier Investments

Solomon Lew is continuing his campaign against Myer, in which he holds 11% of stock, writing to fellow shareholders, saying that the company is ‘in peril’ and blaming the Board for its deterioration. The letter follows John King’s  appointment as CEO and MD In April. Among other things, Solomon Lew has said

‘We should all brace ourselves for yet another profit downgrade from Myer in coming months (the fourth downgrade over the past year!), as well as for a massive loss to be announced in September. We may never see a dividend again from Myer unless the current Board goes.’

Myer has responded saying ‘shareholders need to be made aware of a number of factually inaccurate and misleading statements in the letter’.

MEC Resources v Dissident Shareholders

MEC Resources has received a notice under section 249D, requisitioning the company to call a General Meeting. The notice was received from a number of shareholders, who collectively hold approximately 6.2% of issued capital. This is the same group which challenged the Board in January after the Company rejected a financing package from David Breeze.

The Meeting will consider the appointment of Thomas Fontaine, Albert Grinceri and Peter Richards as Directors and the removal of Chairman, Hock Goh, Executive Director and Company Secretary Deborah Ambrosini, and Non-Executive Directors Kay Ong Yap, Heng Yu and Darryl Moore.

Molopo v Keybridge Capital

Embattled energy company Molopo Energy continues to be targeted by one of its largest shareholders, Keybridge Capital, in its third attempt to change the Board. The activist has nominated William Johnson to be appointed to the Board, while other shareholders advanced Tony Hartnell – who in the past has advised Keybridge and Aurora – and former Woolworths CEO Roger Corbett.

In addition to shareholders attempting to gain control of the Company, the ASX has sent a letter stating it may take action against Molopo for its failure to report certain transactions to the regulator.

Fleetwood Corporation v Unknown Dissident Shareholder

Fleetwood is preparing for a Board challenge, following a request by a substantial holder for a copy of the Company’s register. The shareholder whose identity has not been disclosed has, in the past, nominated a candidate for appointment to the Board.

The Company has sought to engage with the shareholder in the search and selection process for new directors, but the shareholder has declined to do so.

Activist Sandon Capital has been pressuring Fleetwood to sell unprofitable assets since May 2016. The activist has declined to comment on the shareholder challenge.

Kogi Iron v Dissident Shareholders

A group of shareholders, representing 9.5% of issued capital have requisitioned a meeting under section 249D to remove CEO and MD, Martin Wood and Directors, Don Carroll and Michael Tilley.

Directors nominated by the requisitioning shareholders are Philip Ashley, Malcolm Brandon and John Maclean.

A date for the meeting is yet to be announced.

Optiscan Imaging vs Dissident Shareholders

At the meeting on Thursday 10 May, two dissident shareholder groups attempted to instigate Board change. One group sought to replace all Directors, bar Ian Mann, with their own nominees, while the other proposed keeping the current Board but removing Mr Ian Mann.

The majority of shareholders voted against the resolutions put forward by Chief Technology Officer, Peter Delaney, to remove Phillip Currie and appoint Archie Fraser and Ron Grey.

Resolutions to remove Ian Mann from the Board and appoint Darren Lurie and Graeme Mutton were passed.

Caravel Minerals v Cooke Group

In early May Alasdair Cooke and Alexander Sundich were elected to the Board. Later that month Caravel Minerals Chairman, Peter Alexander, apologized to a group of dissidents, including Alasdair Cooke and the Mitchell River Group, for accusations made against them by the Board.

Chairman Peter Alexander, CEO Marcel Hilmer and Directors Daniel Ryan and James Harris all resigned, effective May 23, 2018. Mr Wayne Trumble joined the board on 25 May.

29 May 2018

ASX to make purpose key to good governance


Giles Rafferty, Corporate Communications and Media Advisor The Financial Services Royal Commission is shining a light on governance failures at some of Australia’s largest businesses. It has also revealed a clear need to restore trust in Australian listed companies. The ASX Corporate Governance Council is seeking to address the trust deficit by updating the Principles and Recommendations […]

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29 May 2018

Time to Talk to Proxy Advisers


Victoria Geddes, Executive Director It seems a strange thing to put on the IR agenda, with AGM season still 5 months away for most Australian companies, but June and July are the months when companies are best placed to gain access to proxy advisors outside the peak months of proxy season (April, May, September, October, […]

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