AZS Shareholder Resolution, page-6

There’s around 2,000-2,500 shareholders on the AZS Share Registry. Of these, perhaps 2,000 hold a marketable parcel.

We only need to rally 5% of total shares to trigger a general meeting (s.249D(1) Corporations Act) At such a meeting we can put forward a resolution for a vote (e.g. demand changes to quantum or configuration of exec remuneration, or changes to the Board).

This means collecting signatures from holders of approx. $1m in shares (could be a small number of large holders, large number of small holders, or mix of both). My analysis to date suggests it may be prudent to focus campaign activity on ‘mid-range’ holders (e.g. from $5,000-$15,000 in holdings). I think this is our sweet spot.

Of course we would still contact larger ‘high-wealth’ and institutional investors, but the approach and objectives of the interaction would be customised, and not necessarily simply focused on enlisting support for a particular resolution. I’ll talk more about this shortly.

Another option is to simply propose a members’ resolution for inclusion in the company’s next general meeting. If we can source 100 shareholder signatures (easy), the company is even required to pay and organise postage of the resolution to members (s.249N(1)(b) Corporations Act)

These actions aren’t mutually exclusive of course. We can campaign to collect the 5% for a special ‘crisis’ meeting with a predetermined members’ resolution. At the same time collecting the 100 signatures to ensure we’re on the agenda at the company’s next meeting.