There were no great revelations at last Friday's 2011 AGM. The...

There were no great revelations at last Friday's 2011 AGM. The PPN Shareholder Action Group asked a number of questions and received reasonable answers. The Action Group members are now very much focused on the future for PPN rather than dredging up the past.

The VCAT liquor licence hearing is still a big worry with the hearing reconvening on 5 October for about 5 days. The Judge will then make a decision regarding whether any sanctions will be imposed on the BAR20 licence & the CEO. We may know the outcome by November when the 2012 AGM is likely to be held.

With a former Mayor of St Kilda on the board and a new manager at BAR20, there are early signs that PPN has turned the corner towards better management and increased profitability.

For example, the annual reports for the past few years show only a single board meeting per year at a time when the wheels were falling off. When I asked for a minimum of 6 board meetings a year, I was pleasantly surprised that they are already committed to holding 12 meetings a year. Fantastic!

I also asked that the board be increased from 3 to at least 5 directors as the burden of navigating the bureaucratic red tape minefield is beyond the capabilities of one CEO wearing all the hats. More directors may come in time when they find the right people who are not worried about the stigma of being involved with sexually explicit entertainment.

The Remuneration Report was rejected after a Poll so this is a "First Strike". Under s.250R(3) of the Corporations Act 2001, the decision is ‘advisory’ only and is not binding on the directors.

The 'second-strike' occurs if PPN's subsequent Remuneration Report receives a ‘no’ vote of 25% or more. If this happens, the shareholders will vote at the same AGM whether the directors will need to stand for re-election within 90 days (‘spill resolution’).

Directors & key management personnel & their ‘closely related parties’ (i.e., controlled entities, spouse, children, etc) will not be allowed to vote on
this resolution. If the resolution is passed with 50% or more of votes, then a 'spill meeting' must take place within 90 days.