Ann: Results of Meeting, page-2

## Professional Analysis: Range International Limited (ASX:RAN) AGM Results

**Stock Analyst Perspective:**

1. **Strong Mandate for Board:** All resolutions passed decisively via poll. Resolutions 2, 3, 5, and 6 received near-unanimous support (>98% FOR votes), indicating strong shareholder confidence in the board, its strategic direction (including capital raising authority under 7.1A), and executive compensation plans.

2. **Remuneration Report Passes (Barely Comfortably):** Resolution 1 passed with 81.36% FOR votes. While comfortably exceeding the 50% requirement and avoiding a "strike" (which requires <75%), the 18.64% combined AGAINST/ABSTAIN is significant. This signals notable shareholder concern over executive pay practices that management should address proactively.

3. **Governance Concerns Evident:**

* Resolution 2 (Director Election) and Resolution 4 (Employee Incentive Plan) saw substantial protest votes: **8,000,000 votes ABSTAINED** on each. This is a large, coordinated signal of dissatisfaction, likely from institutional investors, regarding specific governance or compensation issues.

* Resolution 4 also had a relatively high ABSTAIN (8.32%) even among directed proxies, reinforcing concerns about the incentive plan's structure or potential dilution.

4. **Capital Raising Flexibility Secured:** Resolution 3 (ASX Listing Rule 7.1A) passed overwhelmingly (99.96% FOR). This grants the company valuable flexibility to issue up to 15% of new equity over the next year (subject to the rule's conditions) without requiring further shareholder approval, aiding potential fundraising for growth.

5. **Proxy Power & Voter Turnout:** The very high number of proxy votes exercisable (170-178 million shares) compared to the directed proxies for Res 1 (33.3 million) suggests a significant portion of shareholders relied on the Chairman's discretion. This generally indicates trust but reduces transparency on individual voter intent.

6. **Operational Context:** The company's focus on sustainable plastic pallets (Re>Pal™) positions it well within ESG trends and the circular economy. The strong vote on core operational resolutions (2,3,5,6) supports continued execution of this strategy.

**Financial Auditor Perspective:**

1. **Compliance Verified:** The disclosure format adheres to ASX Listing Rule 3.13.2 and Corporations Act Section 251AA requirements for reporting AGM poll results and proxy votes. The announcement is properly authorized by the Company Secretary.

2. **Voting Mechanics:** The use of a poll (mandatory for listed companies on substantive resolutions) ensures votes are counted based on shareholding size, providing a more accurate reflection of shareholder sentiment than a show of hands. The results table clearly differentiates directed proxies vs. total votes cast (incl. discretionary).

3. **Remuneration Report Vote:** Passing above 75% avoids the "two-strike" rule consequences for now. However, the auditor would note the significant dissent (18.64% not FOR) as a governance risk requiring board attention. This level of dissent often prompts enhanced engagement with dissenting shareholders and potential revisions to remuneration policy.

4. **Abstentions:** The large, specific abstentions (8 million shares) on Resolutions 2 & 4 are unusual and noteworthy. An auditor would highlight this as a significant governance event requiring explanation in the company's governance statements or minutes. It suggests potential disagreement with specific individuals (Res 2) or plan features (Res 4).

5. **Forward-Looking Statements:** The disclaimer is standard boilerplate language for ASX announcements, adequately cautioning investors about inherent uncertainties in projections. No audit opinion applies to these statements.

6. **Data Consistency:** The proxy vote numbers and percentages appear internally consistent within the table. The "Total Votes Cast" (FOR + AGAINST + ABSTAIN) matches the sum of "Directed Proxies" and "Proxy's Discretion" votes.

**Integrated Opinion & Conclusion:**

* **Overall Positive, with Amber Flags:** The AGM results demonstrate strong shareholder support for Range International's core strategy, board leadership, and growth initiatives (especially capital raising flexibility). This is fundamentally positive for investor confidence.

* **Governance Concerns Require Action:** The significant protest votes against the Remuneration Report and the large, targeted abstentions on the Director election and Employee Incentive Plan are clear amber flags. The Board **must** engage with dissenting shareholders to understand and address their concerns, particularly regarding executive remuneration and potentially the structure of the incentive plan or specific director accountability.

* **Operational Green Light:** The overwhelming support for operational resolutions provides a clear mandate for management to execute its business plan focused on sustainable plastic pallet manufacturing.

* **Investor Consideration:** While the core business mandate is strong, investors should monitor how the board responds to the governance concerns raised by the vote, particularly regarding remuneration. The 8 million share abstentions warrant attention in future communications.

**Recommendation (Analyst View):** **Hold / Monitor Governance Response.** The strong operational mandate is positive, but the governance concerns revealed in the voting patterns introduce a note of caution. Future performance and the board's response to shareholder feedback will be key. The passing of Resolution 3 provides valuable strategic flexibility.