Vote No to Nasty Little Share Placements

Intelligent Investor

Independent Financial Research

Vote No to Nasty Little Share Placements. Spring is the season for horse racing, and in the business community, also the season for annual general meetings at the majority of Australia's listed companies. It's the time of year shareholders get to review the performance of the board of directors, and are given the opportunity to vote on the election of directors. Most topically for the last few years, shareholders also get to approve or oppose (or express disgust at?) the remuneration reports for executive pay. One that often slips under the radar are the resolutions to approve extra placement capacity by special resolution. Sounds innocuous, but this is a nasty little resolution and you should vote it down. The board can already issue 15% in additional shares without your permission and wants your approval to increase that to 25%. Those shares, which dilute your shareholding, can be issued at less than market price to any party the board sees fit. (VIEW LINK)


Intelligent Investor
Independent Financial Research

Intelligent Investor is an independent financial research service with a 14-year history of beating the market. Our value investing approach empowers Australians to make more informed decisions to build their long-term wealth. We off structural...

Expertise

No areas of expertise

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.