Forum Topics AGMs and Voting
raymon68
Added 5 years ago

Australian Shareholders' Association

ihttps://www.australianshareholders.com.au/ Australian Shareholders' Association is an Australian not-for-profit organisation which advocates for the rights of retail shareholders. Founded in 1960 in Sydney, ASA provides educational resources and professional learning opportunities for its members, who are largely independent small-scale investors.

ASA has a dedicated team of company monitors who meet with company chairs and directors to discuss issues of importance to retail shareholders. Based on our board engagement and independent analysis of the annual report and financial statements, our monitors prepare voting intentions, having regard to ASA's Voting and engagement guidelines, and they attend AGMs on behalf of our members and retail shareholders.

Voting intentions are published on our website generally two weeks ahead of the AGM (available to members only). All shareholders are welcome to nominate ASA as their proxy. This applies to both members and non-members, irrespective of whether they attend a company meeting as shareholders.

Our company monitors are all ASA member volunteers and participate in annual training and regular monitors' meetings.

We encourage all shareholders to attend company meetings and have prepared a handy Guide to shareholders attending online AGMs during COVID-19

Be part of the solution.

14
ShangriLa
Added 5 years ago

Interesting thoughts Reddaugustin re voting on company voting.

Almost always I don't bother to (waste my time) to vote, because 95% (or more) of the time the resolutions are passed because the board has the favour of major shareholders. Probably the most voted 'Against' resolutions relate to board/CEO pay arrangements.

From time to time institutions dig their heels in on particular items (Wilson's group of companies come to mind in that respect) but overall it seems to me that generally instos accept the resolutions (and cynically I wonder if its to keep on godd terms with the board, nudge nudge) despite my view that some particular resolutions should be challenged.

11
reddogaustin
Added 5 years ago

Hi @Shangrila,

I agree, my votes will never change the outcome. But my beliefs demand that I signal to the board what I believe and try anyway. And you never know, enough little people make the change a good board will get the hint.

I think you are correct regarding insto's and super funds and brokers - there would definitely be unspoken relationships and influences at the golf club, the spa, tennis court, or food consumption location.

There is hope though. I love the two strike rule for renumeration voting, and you see news articles of hope every now and again.

14
Nnyck777
Added 5 years ago

Hi Strawman Team,

I imagine lots of you are beginning to receive Proxy and Voting Instruction forms for upcoming AGMs. 

My question to the crowd is as follows:

As share holders we are often voting to agree to directors/ employees receiving future exercisable options in said company. These expire at various future time points 12 months +. 

What is everyones experience with micro cap investments - are these future option figures being offered to directors and employees pie in the sky amounts? realistic targets? guidance - a belief that the predicted companies share price will easily reach this amount?

I am always watching this amount in notices. The SP option is usually well in excess of the current share price of my micro and mid cap investments. 

I would really value others insights and experience here. 

13
reddogaustin
Added 5 years ago

Hi @Nnyck777

I am probably what’s considered a dissenting voter.

With my 0.000000001% ownership of the companies I own, I will more often than not vote against any short-term incentives, and vote against raising renumeration. Sometimes I vote against re-electing board members.

I don’t believe short term incentives work in favour of the shareholder. Also, board members and CEOs get paid enough. The whole argument of pay to get the best is a falsehood IMHO, a bs justification boards use to increase their own pay. Often my vote against re-election is a little more considered, maybe he or she missed a meeting (no excuse IMHO) or he or she sit on multiple boards (I don’t like this) or in my opinion, that individual is the reason for company underperformance.

Otherwise, I blindly vote yes.

Either way, I think the most important part is that you take part! Whether you own 5% or 0.0000001% voting is moral responsibility.

[edit: spelling]

13
Nnyck777
Added 5 years ago

Hi Reddogaustin,

Thanks for your response. I totally agree. I always take the time to vote and have done so for years. That is my money those companies are either doing right or wrong by!!!:) I have to admit I have dissented myself on numerous occasions when I thought that options were being handed out willy nilly with very attractive salaries to boot. However, recently I had a breath of fresh air from one of my biotech's BOT where a very experienced and talented CEO plus others took massive paycuts to keep the business going and not drain the balance sheet during FY21. I heartily voted for extra options as an alternative to salary and was incredbily impressed with the forsight and commitment of the management team. 

Do you have thoughts on options prices themselves from your experience. Or do you just have a holus bolus no extra option incentive approach?

Nnyck777

12
reddogaustin
Added 5 years ago

Regarding option prices, I sometimes take them to be implied or goal based target prices, a situation where an astute board can influence or signal the company narrative, but that could also be my over reactive brain looking for something that isn't there.

But generally, it is a default no to short term options, and usually a default yes to long term options, irrelevant of the price.

Just one opinion though. Always keen to hear others.

12