Saturday, March 30, 2024

Tardy proxies cost director job

Avatar photo
Tardy use of the proxy vote system by larger shareholders has cost businessman Andy Lowe his place as a director of Blue Sky Meats.
Reading Time: 3 minutes

It meant the outcome of a vote at the company’s annual meeting was decided by less than 10% of the shares, chairman Scott O’Donnell said.

Some of the owners of those shares had opposed Lowe’s re-election at the meeting in Invercargill on August 21 and after an inconclusive show of hands in the initial vote, a poll was requested and Lowe lost out.

Blue Sky’s constitution required proxy votes to be received by the company at least 48 hours before any meeting but the proxies from larger shareholders were lodged on the day of the meeting so could not be counted.

Blue Sky’s remaining directors, O’Donnell and Peter Carnahan, took legal advice to confirm that decision before releasing the outcome of the vote on August 25.

O’Donnell acknowledged some shareholders had been careless in their filing of proxy votes.

“We’ve never had a decision before at an annual meeting which required the proxy votes. We’ve never had to use it but it’s in the constitution.

“It’s a sad outcome and a result I don’t like but it’s the due process.”

Lowe was the second biggest shareholder with 17.94% and O’Donnell represented number three shareholder H W Richardson Group with 15%.

Lowe couldn’t attend the meeting and later told Farmers Weekly he would rather not be a director if some shareholders didn’t want him there.

He had become a director about four years ago only because he was unhappy with the company’s performance and a lot of the hard work had been done in setting a new strategic direction, enabling Blue Sky to adjust nimbly and quickly to changing markets.

O’Donnell was a very good and commercial chairman working for all shareholders and Blue Sky now had a really good, new chief executive in Todd Grave.

“We’ve made very good changes and as a shareholder I’m comfortable not being there with them in charge.”

He would be prepared to return at a later time but only if he was wanted by other shareholders and if he could add value.

“I’ve got no ego about getting back on and if other shareholders don’t want me, I’m not interested in being there as a sideshow.”

O’Donnell said Lowe had been a strong director and had pushed for better results after a period of disappointing returns by the company.

“He was driving us hard to do better and I don’t think the vote was against him but more a protest at the company not doing very well.”

Blue Sky reported a $1.9 million loss for the year ended March 31 but O’Donnell said its trading since then had improved sharply, helped by the changes made and a new chief executive.

“We’ve moved from slow to fast-moving.”

Lowe Corporation had a shareholding that gave it the right to some influence on the board and if Lowe wanted back on at some point that was something the company would look at.

“He’s been very gracious about it,” O’Donnell said.

O’Donnell and Carnahan expected to be able to announce two new directors ahead of the next board meeting on November 2.

“With the size of the company we don’t need a massive board. Four is enough.”

China-owned Binxi NZ was the biggest shareholder with a 20% stake and late last year made a takeover bid for Blue Sky at $2.20 a share supported by the board but the offer lapsed in March when Overseas Investment Office (OIO) approval was not received in time and after it reviewed the company’s forecast profitability.

OIO approval had since been given. The offer had received a 96% acceptance rate.

The directors still supported an offer at $2.20 a share but there had been no further indication from Binxi NZ on its plans, O’Donnell said.

The shares last traded on the Unlisted platform at $1.85.

Total
0
Shares
People are also reading