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AWS Board fumble not acceptable, says growers
31 Oct '06
2 min read
The wool industry peak body WoolProducers has written to the Chair of Australian Wool Services, putting the company on notice that growers will not accept any further fumbles like the one that occurred this week, with the scheduled retirement of director Trevor Flugge not coming to the attention of the board.
“In this day and age of corporate governance requirements, it beggars belief that AWS did not know which directors would be up for re-election this year,” President of WoolProducers Robert Pietsch said.
“By not realising that current Director Trevor Flugge was required under the constitution to retire this year, they have put shareholders in a very awkward position.”
“The consequence of this oversight is that whilst Mr Phillip Attard will face shareholders at the Annual General Meeting in November, a replacement for Mr Flugge will only be appointed after the AGM - meaning that they will hold the position of Director for one full year before shareholders are consulted.”
“The other key point to make is that this mistake has meant that the company will fall below the number of four Directors required under its constitution.”
“Although this is technically permissible under the rules, the board will not be able to make any decisions until a new Director is appointed, which is something that should not have been allowed to occur.”
“If this kind of error is being made, it's makes shareholders think long and hard about how other aspects of the organisation are being managed and will no doubt influence their thinking when considering the future of the company.”
“It is unacceptable that AWS did not realise that a Director was up for retirement, particularly when they are under such intense scrutiny and the Director in question is someone with the profile of Mr Flugge.”
“In this day and age of corporate governance requirements, it beggars belief that AWS did not know which directors would be up for re-election this year,” President of WoolProducers Robert Pietsch said.
“By not realising that current Director Trevor Flugge was required under the constitution to retire this year, they have put shareholders in a very awkward position.”
“The consequence of this oversight is that whilst Mr Phillip Attard will face shareholders at the Annual General Meeting in November, a replacement for Mr Flugge will only be appointed after the AGM - meaning that they will hold the position of Director for one full year before shareholders are consulted.”
“The other key point to make is that this mistake has meant that the company will fall below the number of four Directors required under its constitution.”
“Although this is technically permissible under the rules, the board will not be able to make any decisions until a new Director is appointed, which is something that should not have been allowed to occur.”
“If this kind of error is being made, it's makes shareholders think long and hard about how other aspects of the organisation are being managed and will no doubt influence their thinking when considering the future of the company.”
“It is unacceptable that AWS did not realise that a Director was up for retirement, particularly when they are under such intense scrutiny and the Director in question is someone with the profile of Mr Flugge.”
WoolProducers
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