Just for clarity, there is no actual threshold of ownership to get a seat on the Board but 20% is a rough rule of thumb (equates to a board composition of 5 persons) and this often works in a friendly situation where a party is invited by the Board to take up a seat if there is a vacancy or the discretionary right for the current Board to appoint a person. This person would be referred to as a Dependent Director as they have an interest in their investment exposure. Sometimes parties seek a 20% holding for others and may not seek a Board seat and sometimes less equity is required for a party to be invited to the Board. Essentially there are no hard and fast rules.
In the case of 1AG it could be more about SNC putting the company on notice to call an EGM, which they can do with anything over 5% equity, and seeking a vote on a number of ordinary resolutions and one of those resolutions may well be the appointment of a new Board member if the company constitution caters for the addition. However the share register make up of 1AG is such that SNC would need a strong vote support as I suspect they aren't a "friendly" to the Board so the current Board and its friends will probably vote against their uninvited presence. So if this was the path SNC took it would need, I suspect, around 20% of the issued vote for a running chance.
Even though the ASX Listing Rules, the Corporations Act, the Takeover Provisions etc. are reasonably clear it is a world of nuances, quirks and to some degree mysterious black magic.
Personally I think the BoD needs a complete refresh, remove the CEO and the company needs to get out of WA and get serious about whatever it intends doing. In its current form it wont happen unless a catalyst and an opportunity appear. SNC could be the catalyst so all they would need is the opportunity.
1AG Price at posting:
4.5¢ Sentiment: None Disclosure: Not Held
