IN­TER­EST­ING DE­VEL­OP­MENTS AT AGMS

Finweek English Edition - - SIMON SAYS -

Now that com­pa­nies are re­port­ing the ac­tual votes cast at AGMs, Sens an­nounce­ments have be­come more in­ter­est­ing. The Pin­na­cle AGM had all sorts of drama with di­rec­tor nom­i­na­tions be­ing with­drawn and oth­ers only just get­ting enough votes. But two res­o­lu­tions that were voted against are sig­nif­i­cant: the gen­eral au­tho­ri­sa­tion to is­sue shares for cash and the re­mu­ner­a­tion pol­icy both got voted down. The lat­ter is moot as it is not bind­ing (which in it­self is out­ra­geous), but the for­mer is im­por­tant. It is very sel­dom that direc­tors are not au­tho­rised to is­sue shares for cash and it means that the board’s hands are tied in do­ing any deals, in­clud­ing tak­ing over the rest of Dat­a­cen­trix. Ad­mit­tedly the board is un­likely to use low priced shares to buy any­thing, but it does show share­hold­ers be­ing ac­tive.

On the other side of the spec­trum we had the HCI AGM that showed up share­hold­ers as com­plete stooges with direc­tors be­ing re-elected (in­clud­ing Yunus Shaik) with over 98% of the votes. I wrote on this last week and re­main amazed that all those large in­sti­tu­tional in­vestors seem per­fectly happy with what’s been hap­pen­ing at HCI. Sure some of them un­doubt­edly are, but all of them?

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