That’s not a bad idea for aggrieved shareholders Ardas
I’ve put the legal framework below -
Two-strikes’ Test
The Act strengthens the voting process by setting out consequences in the event that the shareholders vote against the Remuneration Report – ss.250U~Y.
The 'first-strike' occurs where the Remuneration Report receives a ‘no’ vote of 25% or more at the AGM. If this happens, the company’s next subsequent Remuneration Report must explain whether and the extent to which shareholders’ concerns have been taken into account.
The 'second-strike' occurs if the company’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 and key management personnel and 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.
And just in case it is needed...........notice of the spill resolution must be included in the notice of meeting for that AGM to ensure due notice has been given in the event that the second-strike is triggered. The notice must explain the circumstances in which the resolution will apply and invite shareholders to appoint a proxy to vote on the spill resolution.
PRL Price at posting:
0.3¢ Sentiment: None Disclosure: Held
(20min delay)
