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 WA lobby says keep AWB dual class shares 

WA lobby says keep AWB dual class shares

18/07/2008 9:53:00 AM
Western Australia's Wheat Growers Association has aligned itself with the four grower directors in favour of retaining AWB's dual-class share system, arguing producers not to give up control of the company.

With a majority of AWB Ltd A-class directors opposed to removal of Article 2 from AWB Ltd's constitution, WGA says grower (A class) shareholders should not to give up control of the massive advantage AWB holds in the export wheat market.

"The opinion expressed by a majority of A-class directors that the proposed changes are not in the interests of AWB, should not be lost on A-class shareholders," WGA chairman Bob Iffla said.

"In the voting papers sent to growers the consequences of giving up A-class shareholder control has been made very clear with the AWB board saying that once A-class shareholder control is removed it will 'focus its resources in areas that generate the best return for shareholders'.

"Focusing on what gives the best return to investor shareholders will not necessarily be in the best interests of Australia's wheat growers who needed to fight to have over 60 years of wheat marketing knowledge and intellectual property funded by wheat growers under wheat grower control."

Mr Iffla said the vote will come down to a choice by wheat growers between ensuring there continues to be a grower controlled entity required to maximise grower returns, or giving over control to investor shareholders to exploit for their own benefit.

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Comments


Date: Newest first | Oldest first
Well done. The last paragraph is particularly pertinent.
Posted by Jock on 19/07/2008 6:08:53 AM
At the last vote almost two thirds of A class share holds voted for change. I hope we have moved on and AWB, this time, will be able to normalize the company. For growers who would like to support a grower controlled structure get behind CBH.
Posted by chook on 21/07/2008 8:15:09 AM
Once an almost $3.8 Bil Cap company now in real terms less about .75 bil. increased costs due to rising prices - so where will the working cap come from?

Surely there is middle ground on this to protect growers and keep awb competitive in a new but very competitive market. Overseass owned/controlled entities will just pick the eyes out, gain market control and the a-class shareholders will still have their a class shares worth squat.

Posted by phil on 21/07/2008 10:28:36 AM

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