Its worth reading the history of this company as it happened in 2003. The Board at the time tried to sell the Poultry business and we were told that the proceeds would be around 70c a share.
Lendich and his WA poultry farmer mates kicked that Board out and ever since then, he and Bruce De Lacy have averaged around $550,000 in remuneration for running chook farms while the share price fell from 40c to 7.5c. De Lacy resigned from the board in 2011 but I gather he is still on the payroll. Why this company needs two solidly paid executives when it can't earn any money or pay any dividends is certainly not obvious.
This company has a large number of related party transactions totally around $12 million a year with companies in which the FRM directors are involved. I would love to know if Western Eggs and Southern Eggs are as profitless as FRM has been during this decade in which these guys have controlled our company.
It was interesting to see that the auditor Ernst Young resigned in 2011. That is not a healthy sign for a company which does so much business with its own directors.
I will be voting against the Managing Director, Lendich, and I am very pleased that a shareholder has challenged him. The shareholder won't win the vote but hopefully he will draw attention to how these poultry farmers have used our public listed company.
GPASAS
FRM Price at posting:
7.6¢ Sentiment: Hold Disclosure: Held
