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AWB dissident grower directors in firing line

22 Aug, 2008 11:45 AM
The four grower directors opposing AWB’s reform plans at Thursday's meeting of shareholders faced down calls for their resignations.

Two ex-AWB grower directors were among those who called on the four men – Xavier Martin, Rodger Schirmer, Colin Nicholl and Russell McKenzie – to step down at the meeting held in Melbourne to vote on the reform motions.

All four indicated they plan to stay on despite strong criticism from the floor.

Mr Schirmer said he had taken a position based on what he believed was in the company’s best interests and reminded the meeting having a differing point of view is not a crime.

Mr Nicholl said while it was very easy to be a “rubber stamper” as a board member, it wasn’t something he had any intention of becoming.

Former WA A-class director Chris Moffet, Morawa, expressed his disappointment at what he described as an “appalling lack of governance” by the four directors concerned.

Mr Moffet said while he admired people with moral courage, he didn’t admire “people of commercial ineptitude”.

“You should have all been preparing your resignation to the chairman effective as at the moment this meeting is closed,” Mr Moffet said.

“Why don’t you (four) leave this company and find a company that accepts a split board as being in the best interests of the company – because you won’t find one.”

John Simpson, Oaklands, NSW – who left the board in February after nine years – queried why the four shouldn’t quit regardless of whether the A-class vote attracted the necessary 75 per cent majority to pass the reform motions.

Mr Simpson later told the media he had backed the constitutional changes at the February AGM and would have had no qualms in supporting them again this time around, had he still been on the board.

AWB chairman Brendan Stewart sidestepped a question as to whether he would ask the four dissident directors to resign, saying only, that directors should be guided by the view of the shareholders “which seemed fairly clear”.

Mr Stewart shrugged off a call by Wheat Growers Association chairman Bob Iffla for him to do “the honourable thing” and resign.

“I’m doing it right now because I’m putting a proposal to shareholders that’s going to increase the value of this company going forward, that’s going to get rid of an outdated share structure that is no longer relevant in a new environment without a legislated monopoly supporting that,” Mr Stewart said.

Mr Stewart said he had always said he would be happy to walk away from the board once the necessary reforms had been pushed through.

“And I will stay here until the day that happens.”

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comments


Date: Newest first | Oldest first
Slapping away with a wet lettuce leaf. Most people have more to do with their time than play petty power politics like this.
Posted by Finn McCool, 22/08/2008 12:22:53 PM
Farmers are very good at production economics but we are not good, generally speaking, at marketing and corporate business structure issues. Our expertise is at its best within the farm boundary fence. Unfortunately, we will find ourselves isolated within our farm fence if we can't educate ourselves in the realities of changing business culture.
Posted by SAgrower, 25/08/2008 9:56:05 AM
It appears that the 4 dissidents base their creditability on philosophy and idealology. Not to be a "rubber stamp" has nothing to do with sound, constructive and creative business principles. If the Rubber stamp criteria is the only basis for their stance, they should resign.
Posted by Razor, 25/08/2008 9:28:08 PM

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Former WA A-class director  of AWB Chris Moffet, Morawa, expressed strong feelings at the Melbourne meeting.
Former WA A-class director of AWB Chris Moffet, Morawa, expressed strong feelings at the Melbourne meeting.
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