A fresh stoush has erupted between AWB Ltd and pro-single desk wheat grower groups over farmers who may have lost their A-class voting rights with AWB by failing to each deliver the required 100 tonnes for three consecutive years because of drought.
AWB Ltd will hold a special meeting in late August to reconsider constitutional changes which were defeated at its February annual general meeting because of lack of support from A-class shareholders.
The changes relate to federal legislation in June to remove AWB’s single-desk wheat export powers and, among other things, would lead to the establishment of a single class of shareholder, the disappearance of A-class shareholders and reduced grower influence.
AWB anticipated the legislation by putting the constitutional reforms to its AGM in February, but failed to obtain the required 75 per cent majority – 62.5pc of A-class (grower) shareholders supported the changes.
The situation has now led to a claim AWB Ltd is trying to limit the number of A-class voters at the next meeting and a counter claim from one source that pro-single desk groups want to “stack” the meeting with growers who failed to meet the voting eligibility target not through drought but because they sold their grain elsewhere.
AWB Ltd wants to do away with the dual share structure to attract more investment, claiming the unwieldy structure scares potential investors away.
From The Land, July 3, 2008.