Thanks for your posts, as a member of 'Group ELK' and a top 20 holder I think it is important to discuss pros and cons of this resolution.
When I handed in the resolution to ELK's offices, there were over 20 signatures that represented 7% of issued capital of long term holders. This fact alone suggests the need for change. The motive for wanting a 'shareholder voice' is not about the personal agenda it is ensuring that the right commercial decisions are made.
Group ELK are huge supporters of Chris Mullen and whilst we cannot take credit for promotion to the board we have suggested this to Andy in the past to limited success and perhaps us raising this on numerous times helped in a some way.
One of the problems with the current board is that the majority are geologists and geologists do not necessarily make sound business decisions. For instance both Dave and I was in communication with Andy for months prior to the raising asking what was plan B in regards to the falling oil price. If Andy had of done deals earlier we would not have needed to conduct such a dilutive capital raising. Just look at the increase in market cap we have achieved in the last couple of weeks just by starting some of these projects. Imagine the difference if we had done this earlier. We do need a shareholder advocate to ensure that we are getting return on our investment.
Davo's sporting successes are important. It requires a lot of mental discipline to compete at the elite level at any sport. Davo can bring that discipline to the board and he is not doing this for the money, in fact he does not want a salary, he justs asking for a voice on behalf of Group ELK.
Proof that we need Davo on the board is that this resolution appears to have made management realise that shareholders will only tolerate so much. In the full year statutory accounts (released 3 weeks ago) ELK had issued incentive options to directors (20c exercise price) to be approved with resolutions at the AGM. The resolutions are not on the Proxy form so will not be voted on at the AGM and must have been dumped from the the full year statutory accounts................
Options The Board has approved the issuance of options to Executive Directors. The price was calculated using the 5 day VWAP prior to grant date. Shareholder approval will be sought at the AGM to be held on 19 November 2009.
Director Mr Andy Rigg Director Mr Bob Cook Purpose Performance in 2008/2009 Purpose Performance in 2008/2009 Grant Date 25 June 2009 Grant Date 25 June 2009 Quantum 300,000 Quantum 100,000 Exercise Price $0.20 Exercise Price $0.20 Expiry Date 24 June 2014 Expiry Date 24 June 2014 Vesting Period 50% immediate, 50% 12 months Vesting Period 50% immediate, 50% 12 months
Would you vote in favour of giving Andy 300,000 options @ 20c for his performance over the last 12 months? Secondly, the collective salaries of officers and directors increased by 30% over the year. What the? In all other industries, executives have taken zero increase or pay cuts yet ELK decides to reward poor perfomance. We need Davo on the board to keep them honest.
Finally you are correct that Bob Heally will make the final decision. We do not know how Bob intends to vote however it will get very interesting if he doesn’t and lets rest of the shareholders decide.
Im voting FOR resolution 5!
DJ
ELK Price at posting:
33.0¢ Sentiment: Buy Disclosure: Held
