03/09/2008 - 13:57

AWB directors under threat

03/09/2008 - 13:57

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Western Australian AWB Ltd director Colin Nicholl is under threat from chairman Brendan Stewart, who has called for the resignation of all directors who did not support the scrapping of the company's unusual dual-class share structure.

Western Australian AWB Ltd director Colin Nicholl is under threat from chairman Brendan Stewart, who has called for the resignation of all directors who did not support the scrapping of the company's unusual dual-class share structure.

AWB today succeeded in gaining sufficient support to scrap its dual-class share structure, on its third attempt, after A-class shareholders voted at a meeting in Melbourne.

A-class shareholders are wheat growers and some 77 per cent today voted to support constitutional change.

Support from 75 per cent of A-class shareholders was required to end the dual class share structure.

Asked if four A-class directors who opposed constitutional change should resign, Mr Stewart said: "My belief is they should resign and resign today."

The four directors are Mr Nicholl, Russell McKenzie from Victoria, Rodger Shirmer and Xavier Martin, both from New South Wales.

Mr Stewart said the end of the dual class share structure means that all A-class directors, including himself, will retire at an extraordinary general meeting to approve a new commercial constitution later this year.

"The question is whether those directors whose positions have been so overwhelmingly rejected by both the A and B class shareholders in general meetings, and by the A class shareholders here today - whether it continues to be both moral and ethical for them to draw a remuneration package from those shareholders who have rejected their proposition," he said.

"I think not."

High profile Western Australian director Tony Howarth also sits on the AWB board.



 

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