where to now

Boon just squeeked. In todays's SMH "Mr Boon described yesterday's vote as a protest against the company's performance. He said the PaperlinX board and management were committed to turning around the company's performance in the shortest possible time.

This would be achieved by cost reduction, the sensible sale of non-core assets, and building the company's business in non-paper areas, such as signage and display and packaging materials.

PaperlinX had already indicated it would take the next two financial years to restructure the company and shareholders would see the benefits of cost savings from 2014, Mr Boon said."

In yesterday's Proprint Andrew Price said "We gave it good go but the shareholders have spoken. Now I will sit back and hope the board will achieve everything they say they will achieve. As a shareholder I want to see the return."

He ruled out putting in another challenge, "as long as the company doesn’t try anything stupid like selling the company to private equity for 9c, which is what triggered this initially" ".

http://www.proprint.com.au/News/294765,paperlinx-vote-price-fails-to-topple-boon.aspx?eid=16&edate=20120323&utm_source=20120323&utm_medium=newsletter&utm_campaign=daily_newsletter&nl=daily

So my reading is that Boon and the Board are on notice. They need to be more interventionist in pressuring management to cut costs and remove waste. They also need to communicate more with shareholders with more frequent updates on progress with efforts to reform.

In the meanwhile investors with funds invested with Maple Brown Abbott and Schroders need to ask their management why they voted the way they did. If the market is anything to go by their efforts trashed their investments.