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.