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 Voters respond to AWB battle call 

Voters respond to AWB battle call

03 Sep, 2008 10:35 AM
AWB is believed to have succeeded in galvanising its farmer shareholders to vote at today's meeting on dismantling the company's dual shareholding structure — but it is not clear yet whether they support the concept.

Less than a fortnight ago, AWB came agonisingly close to the 75pc "yes" vote needed to go ahead with extinguishing its A-class shares, which can only be owned by growers, when 74.7pc of the farmer votes supported the move.

Ordinary shareholders overwhelmingly supported the changes, which AWB's board says will enable the company to compete more effectively after losing its role as the single desk for Australian wheat trading from July 1.

AWB chairman Brendan Stewart adjourned the meeting until today, at the request of Victorian Farmers Federation Grains Council representative Andrew Weidemann, who felt that the close result meant a more definitive result could be achieved with more time.

Last night Mr Weidemann, who supports the AWB reformation, and West Australian Wheat Growers Association president Bob Iffla, who opposes it, were making their respective ways to Melbourne for the meeting.

The A-class shares cannot be traded, nor do they receive a dividend, and holders must surrender them when they cease to be wheatgrowers.

The chief power in the shares is their ability to appoint a majority of directors to the AWB board.

That has meant AWB has a large number of farmer directors on its board.

The company believes that the board needs directors with a broader range of skills and experience to enhance the company's credibility in financial markets when it comes to raising cash for expansion of its business.

Most of the opposition to AWB's changes is coming from West Australian and NSW growers, with Mr Iffla arguing yesterday growers would be surrendering their power for nothing if they supported abolishing the A-class stock.

AWB executives and supporters have spent the intervening time since the adjourned August 21 meeting writing letters and contacting the company's nearly 20,000 A-class shareholders to persuade them to vote, including offering an ability to vote via the company's website.

Only 27pc of the grower shares were actually voted at the last meeting, but sources said yesterday that many more have voted this time.

* The final result of the vote will be published on FarmOnline immediately after it is announced this afternoon.

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AWB chairman Brendan Stewart.
AWB chairman Brendan Stewart.
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Poll Date: 31 August, 2008

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