Australia's largest stock trading and investment forum Australia's #1 stock forum

WFL

Click for more information

0.00%

0.3¢ wellfully limited

JTA thats a good insight into how this striking works. Given lot...

First 18 Last

Share
Profile

Follow
sharesmoney

1,414 Posts.

76

26/01/18

14:27

Post #: 30591628
Share
Originally posted by jasetheace40 ↑

Yes, "zero expectations" I'm sure occupy the thoughts of many long-term holders right now for reasons that shone through in the vote-down of Resolution #1 last year ("strike one"). But let's think about what the vote down of resolution #1 means:

First, the law creates a 'two-strikes' rule (not 'three strikes and your out' rule than we intuitively think it is). The 'first strike' occurs when a company's remuneration report receives of 'no' vote of 25% or more. This clearly occurred at November' AGM last year (it was more than 58% 'no').

As result of the 'first strike', this year the company's remuneration report must include an explanation of the board's proposed action in response to the 'no' vote or an explanation to why no action has been taken. Make of that what you will, but reading between the lines, the law requires them to take drastic action following this 'first strike' and, if they don't, it's curtains for the board.

This year they will be facing the prospect of a 'second strike'. Again, only 25% of shareholders votes is needed. Given there were 58% of votes cast 'no' in November last year, my view is that the Board will have to achieve significant improvements in company performance this year to avoid the second strike. This is why this year's AGM is the AGM to attend. If you've never thought about attending an AGM, then this year is the one to think twice about. Because of the 'first strike', shareholders will have unprecedented power at the 2018 AGM that they've never had before - the directors will be on the edge of their seats, as explained in point 4. below.

At this year's AGM, if 25% vote 'no' against the remuneration report, that constitutes the 'second strike'. Immediately following this vote, the chair is obliged to put the following resolution to the floor: "That all directors need to stand for re-election." This resolution needs the standard 50% votes to pass, so this is why it's very important that shareholders are there. This is what is referred to as the "spill" vote. If the resolution is passed by 50% of the votes, the entire Board is effectively sacked and they each have to seek re-election. Re-election must take place within 90 days, and so there will be a flurry amongst existing (sacked) directors and other shareholder-endorse directors to get their nominations in and get elected. Just imagine the angst that will be generated amongst the directors if this happens.

For this reason, I believe this is the year that the company will achieve great things this year. Jeff in particular is an extremely smart man. I saw the look on his face as the Company Secretary read out the results. He was uncomfortable. He we ensure that there is no issue with shareholders' perceptions of Board management by the time the AGM comes around this year. The Board will have been completely re-consistuted. Indeed, he may be the only one of the old guard left by November this year and we will all be very satisfied with the quality of direction instigated by the new directors by then. This is why I think 2018 will be the year of OBJ.

J

Expand

JTA thats a good insight into how this striking works.

Given lot of shareholders have enough of the porkies coming in and if we don't have BIG REVENUE and SECOND TECH signed which was touted by some on HC and at AGM and 3 months on still waiting.

I am wondering will/is it possible for shareholders to give Jeff and his board some goal posts to achieve?
OBJ Price at posting: 3.8¢ Sentiment: Hold Disclosure: Held
4 Upvote

0 Great analysis

Reply

Top Stories

Bitcoin: Current State of Play & Where to Next | Swyftx

TNC

True North increases silver metal at QLD's Vero deposit by 20%

HZR

Hazer Group reports ten days of continuous operation at graphite-manufacturing test facility

Week 32 Wrap: AI is clearly overhyped – but did we see ‘bubble’ burst already? Plus RBA decision; Japan’s wild week & Google ruling

Dale Gillham's weekly wrap: picking resilient stocks in a volatile global market

Revolutionary inverter technology leads the clean energy charge

Emerald & Azure score Digger & Dealer awards

TKM

Trek Metals jumps 5% as gold & REE drill run kicks off at Christmas Creek in the Kimberley

From the Floor with Federal Opposition Leader Peter Dutton at Diggers & Dealers 2024

NEU

Neuren Pharmaceuticals dips after pediatric Angelman Syndrome Phase 2 trial results fail to impress

There are more pages in this discussion • 56 more messages in this thread...

First 18 Last

Add WFL (ASX) to my watchlist