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 Shock delay on grower vote: no clear winner 

Shock delay on grower vote: no clear winner

21/08/2008 7:49:00 AM
The AWB general meeting in Melbourne on Thursday ended with a surprise adjournment of the grower vote on the company’s reform proposal, in an at times feisty meeting.

The meeting was called to vote on proposed amendments to the AWB constitution that would effectively do away with its dual-share structure.

Currently, AWB's A-class shares are controlled by growers. Its B-class shares are owned via listing on the ASX.

An interim result from the vote of B-class shareholders (those with shares listed on the ASX) indicated overwhelming support for reform.

The motion to amend the constitution won more than 90pc of support of eligible votes based on votes counted prior to the meeting and proxies in favour of the move.

A second motion, designed to allow AWB to limit shareholders' stake in the company for another three years to protect it from takeover bids, also won overwhelming support.

However, it soon became apparent the result from the A-class vote would be less clear cut, prompting Victorian grain grower Andrew Weidemann to call for the vote to be delayed.

After calling for support for an adjournment from the floor, AWB chairman Brendan Stewart adjourned the meeting – much to the anger of those opposing the company’s reform plans, who believe no such action would have been taken had the result looked to go the company’s way.

Notably, the reform plan had 74.7pc support of A-class votes cast, prior to the meeting, and proxies in favour of the move – just shy of the 75pc needed to pass the changes.

“In my view, it is important that we have a very clear and concise result whether that is a result for or against reform", Mr Stewart said in a doorstop after the meeting..

"I would not like to see a vote swing either way on one or two votes.

“With participation rates at around 27pc, I think that’s very disappointing.

"I think that, in terms of getting participation rates (up, I’d like to give A-class shareholders a little more time in terms of exercising their vote.

“I don’t think it’s in the interests of the growers or the company for this to drag on, but it is in the interests of the company and growers to have a decisive result.”

In a statement to the ASX on Thursday night, AWB confirmed the voting period would be extended for 11 days to Monday, September 1.

A vote will held on Wednesday, September 3.

The reform proposal has split the AWB board, with four grower directors coming out publicly against the plan.

Notably, the reform has the backing of several major grower organisations, including the Grains Council of Australia and Victorian Farmers Federation as well as the Australian Shareholders Association.

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Comments


Date: Newest first | Oldest first
Hasn't Brendan Stewart seen the ads that say "no means no".

If Rupert Murdoch retired, he would ask a healthy fee for his "A class" share in Newscorp.

Get real AWB and offer wheat growers a commercial share exchange for giving away control.

Posted by mic on 21/08/2008 10:01:25 PM
It wasn't A-Class shareholders who halved the share price. It was the $3million man, Lindbergh.

If Davis and Stewart keep acting like dummy spitters, they'll probably halve it again.

Posted by Spud on 22/08/2008 11:30:31 AM
There was a 27pc of participation by voting wheat growers.

No wonder Bredan Stewart acted the way he did - if you don't like the resulting situation, cancel the meeting and arrange another vote.

To the 73pc who did not bother to vote, you have once again endorsed AWB to use your investment as a milch cow.

Posted by steffi on 22/08/2008 4:20:53 PM
We get what we deserve. We left a control freak in charge and we get this debacle. Stewart couldn't say no to Lindberg, and he still doesn't understand "no". Slow learner!
Posted by Hugh on 22/08/2008 7:48:02 PM
AWB chairman Brendan Stewart and the board should be ashamed of themselves on how they conducted that EGM meeting, and then to call an ajournment of the meeting for 13 days.

This was a planned set up with the motion coming from the VFF, well acted out Brendan! The 74.4% you are claiming is not right. AWB are claiming the total amount of open votes to go AWB's way. When in fact it could be as low as 65% if those open votes went the other way. So another misleading statement coming out of AWB's Management.

Having attended this EGM meeting it was quite apparent that the conduct of this meeting was about SHARE HOLDER GREED and nothing to do with the survival of the Australian wheat grower.

One Journo said he had never heard or seen anything like this before. Neither have I!

Posted by Pedro -- Hanging in. on 24/08/2008 10:24:03 AM

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Q: Do you believe the public has a right to know on which farms GM crops are being grown?

Yes
(65.9%)

No
(31.6%)

Undecided
(2.4%)

Total Votes: 613
Poll Date: 17/08/2008

21/11/2008 | AWI's new board can only succeed in old battles by fighting in new ways.
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