Vote No to Nasty Little Share Placements
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)
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