Unless it's illegal it's very unlikely institutional investors will vote against management.
Why is this? Well because look at the likes of Alliance with some 40 million shares to offload to get out of SPL.
Think of what a 10 cent drop in share price does to their bottom line.
Imagine how much fun traders would have to short the hell out of SPL with the lead up to the AGM and then the vote of no confidence in management coupled with the uncertainty of finding a replacement and quite often CEO's get hefty payouts even when they don't complete their contracts.
It would be a very real prospect to make money with a short position, that weight on the SP coupled with the bad news becomes self fullfilling.
I guess it's why I struggle to understand why so many long-term holders, suffering a 45% paper loss from the recent highs. Just add more pressure to an already wavering share price by telling all and sundry, management have to go....... and they continue to hold?? It makes zero sense.
It would be like trying to sell a house telling prospective buyers everything you hate about it. The kitchens poorly designed, it's cold and gets no sun in winter, the back yard is useless because it's always boggy, the garage door works 80% of the time, there is no TV service, it's drafty and cold in winter and thanks to no insulation your electricity bills are $6 k a year in summer as you have to run aircon 24/7. But it's a lovely house and we love living here, sorry to see it go lol.
SPL Price at posting:
$1.37 Sentiment: None Disclosure: Held
