Cash Converters receives second strike

Cash Converters has been hit with a second strike against its remuneration report but shareholders showed little interest in spilling the company's board at its annual general meeting in Perth today.

About 27 per cent of voting shareholders opposed the company's remuneration report.

A subsequent spill resolution, however, attracted an affirmative vote of just 3 per cent. 

Cash Converters chairman Reginald Webb was resoundingly re-elected in the only other resolution put to shareholders at the meeting.

Under two-strike rules introduced in 2011, if 25 per cent of voting shareholders oppose a company's remuneration report, it receives a strike.

If this happens again the following year, it receives a second strike and a resolution to spill the board is automatically triggered.

Cash Converters managing director Peter Cumins last year described the first strike delivered against the company as peculiar, given that shareholders had approved executive share bonuses two years prior.

The company delivered an 11 per cent increase in net profit after tax for the 2013 financial year. 

Sandalwood producer TFS Corporation was similarly hit with a second strike but comfortably survived a spill resolution at its annual general meeting last week.

Cash Converters shares were 1.1 per cent lower at 89 cents at the close of trade today.