If there is a spill at the AGM, AJX is doomed, in a back to $0.10 way. The value of this company sits completely with the relationships and direction of GR, Nick and now Dirk.
Nothing will change directorship wise, 50% is still required to enact a spill, all it will do is have a short-term sentiment affect on the vie of the company and defocus. Not in the interest of any shareholder and in effect a waste of time and money. The process as a result of a spill is as follows:
When a ‘second strike’ occurs, the shareholders will vote at the same AGM to determine whether all the directors will need to stand for re-election. If this ‘spill’ resolution passes with 50 per cent or more of eligible votes cast, then a ‘spill meeting’ will take place within 90 days.
At the spill meeting, those individuals who were directors when the directors’ report was considered at the most recent AGM will be required to stand for re-election (other than the managing director, who is permitted to continue to run the company).
AJX Price at posting:
51.0¢ Sentiment: None Disclosure: Held
(20min delay)