15/11/2013 - 13:49

TFS hit with second strike at AGM

15/11/2013 - 13:49

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Sandalwood producer TFS Corporation has been hit with a second strike but has survived a board spill after more than a quarter of its shareholders voted against adopting the company's remuneration report for the second consecutive year.

TFS hit with second strike at AGM
TFS chief executive Frank Wilson.

Sandalwood producer TFS Corporation has been hit with a second strike but has survived a board spill after more than a quarter of its shareholders voted against adopting the company's remuneration report for the second consecutive year.

About 36 per cent of voting shareholders opposed the company's remuneration report at its annual general meeting in Perth today.

However a spill resolution attracted a vote of just more than 12 per cent.

TFS directors Adam Gilchrist and Patrick O'Connor were each comfortably re-elected at the meeting.

The company earlier this month withdrew a resolution to introduce a performance rights plan after major shareholders opposed the plan.

TFS undertook a comprehensive review of its remuneration processes after receiving a 51 per cent vote against its remuneration report at its annual general meeting last year, appointing Gerard Daniels as independent advisers in the process.

However it defended chief executive Frank Wilson's $750,000 salary in its annual report, saying that it was not unreasonable in light of Mr Wilson's experience and contacts

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.

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