Roll up, roll up, for the DCL circus
January 14, 2008
This Christopher Webb column appeared in The Age on November 26, 2002, after the dramatic DCL AGM.
Didn't Ashton's circus pull out of that reserve opposite the boom gates in Burnley a month or so ago? Well, yes, but it has a worthy successor in the shape of the listed Data & Commerce Ltd, operators of word-of-mouth radio 3AK and music radio 3MP.
Yesterday when an assorted collection of shareholders filed into the group's offices for the annual meeting - half a kilometre up the road from where the Ashtons' clowns usually do their tricks - little did they know that they were about to witness one of the oddest annual meetings seen in this town.
They were about to witness the spectacular fall from the high wire of three people, among them Data & Commerce director, 3AK drive-time broadcaster and big equity holder in the group, The Honorable Jeffrey Gibb Kennett.
Indeed, there was no doubt about The Honourable one's pre-eminent position at the company: a pile of newly-printed Vote 1 Jeff Kennett 3AK Talk 1116 3pm to 6pm stickers were in the foyer.
What few people outside the boardroom knew was that the chairman - Kevin Campbell AM - and fellow director Professor Yianni Attikiouzel would be voted off as directors by two of their boardroom colleagues.
Those doing the rolling included an engineer by trade, more recently the managing director of the group, one Robert Jeffries Chatfield and another director Ronald Hall - a retail nurseryman who also operates such businesses as Supply and Demand.
According to both Campbell and "the Professor" - as he came to be known before the meeting in a yelling match some time later - they discovered they were being voted off by Chatfield and Hall three days ago.
Campbell says he was asked a couple of months ago if he would resign but was not interested and he said if he been asked again, more recently, he would have refused.
Kennett said yesterday that he tried to head it all off over the weekend, but to no avail and as a matter of principle he decided he would resign.
Kennett told the meeting, "(On October 7), I only agreed to continue as a director of DCL and broadcaster on 3AKm if you Mr Chairman, and Professor Attikouzel were re-elected at this AGM as independent directors to guarantee an independent board.
"As you can see from the agreement, independently witnessed, both Mr Chatfield and Mr Hall, agreed to my request." "By today's vote, both individuals have dishonoured that agreement," he said.
"In my opinion, it was important you both be returned as directors, because of your knowledge of the company, your expertise, and the need for the interests of small shareholders to be represented by independent board members to ensure continuation of good corporate governance."
He claimed that Hall - and Ronnie would like it pointed out quite clearly that he has changed his habits of yesteryear. He does not habitually wear jeans, as reported here previously - nowadays he's in Henry Buck gear - he was not an executive director of Data & Commerce but discharged executive responsibilities "for a selection of on-air personalities and producers, and is in the office on a daily basis."
He said, "My contract of engagement was for me to serve as a director and broadcaster, and the failure of the company to secure directors' and officers' insurance, and the breaches of my agreement to which I have referred, make it impossible for me to continue as either a director or broadcaster with the company."
Kennett's resignation ended what he hoped would be "four years of wonderment." Instead it appears that his resignation from the group will have some possibly nasty consequences on the Kennett wealth.
While he did get some freebie scrip when he came aboard the group, Kennett and his wife Felicity had some quite serious money in Data & Commerce.
As of yesterday the family's fortunes had taken a battering due to recent hammering of Data & Commerce scrip.
The Kennett family look to have up to $1.5 million in the shares and this has been subjected to severe punishment.
The euphoria which greeted Kennett's appointment to the board and to the microphone propelled the scrip to 46 cents earlier this year.
But 3AK's rating have been dismal, Kennett himself was broadcasting to a miniscule audience and few people seem to be aware where the station is on the dial.
The group lost $11 million in the June year and operating cashflow was negative to the tune of $3.3 million.
The group's shares have fallen sharply since earlier this year and last Friday closed at 12 cents.
Ron Hall expressed the view that the shares might actually firm after yesterday's meeting but he was well astray on that point.
The market obviously didn't think much of the former premier's departure, and the scrip lost five cents to seven cents on turnover of 684,600 shares.
Among the main questioners at the meeting were Crikey newsletter publisher Stephen Mayne, Peter Lawrance and The Australian's media writer, Mark Day.
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