throwing the baby out with the bath water!, page-35

Here are some snippets on the potential 2nd strike. I hadn't read up on this much before and it appears there are 108 companies in Australia facing this at this year's AGM

Basically from what I understand it says:
- At the AGM there will be a vote on the renumeration
- If >25% say no then there will be a spill resolution vote
- If the spill resolution vote @ the AGM >50% then FML must have a Spill Meeting within 90days

So basically majority rules for the board and a board spill would not occur till ~Feb 2013 unless there were new appointments at the AGM.


http://www.news.com.au/business/companies/company-board-of-directors-sweating-it-out-in-lead-up-to-annual-general-meeting-season/story-fnda1bsz-1226482155904#ixzz27uK3n2Dq

THIS is the year of the 'second strike'. Australian company boards of directors are quaking at the prospect of getting whacked by shareholders in the coming annual general meeting season.
Arguably, though, that quaking is more being done gratuitously on their behalf by the media and fee-seeking self-promoting governance advisers than actual company boards.

A case in point was a headline over a commentary in The Age - "Directors sweat over 'two strikes'." If they really are sweating, they don't understand the rule. For, despite being much discussed, the practical operation of the 'two strikes' rule does not seem to be actually understood. That it is, basically, a paper tiger. At worst, its only impact would be the 'embarrassment factor'. Goodness me, the board of Company X got a second strike from shareholders.

The fundamental reality is that it is only the third strike, so to speak, that matters. Importantly, it always has been only that third strike that mattered. Again, most importantly, that third strike was always available. In short and in sum, nothing of substance has changed. Boards are no more vulnerable to the wrath of shareholders than they ever were.

###### Rest of the story is in the link ######

LennyQUT