Transcript of 2003 NAB AGM exchanges

STEPHEN MAYNE: Morning Chairman, just a couple of quick issues: firstly I'd like an assurance that next year you will talk with some of your fellow members of the ABA and ensure that the AGMs don't clash. I just find it's an incredible coincidence - I suspect quite a cynical act - that ANZ are meeting right now in Brisbane and St George are meeting right now in Sydney. So, how three of the five biggest banks in Australia can conspire to have their annual meetings and the like prior to Christmas

CHAIRMAN CHARLES ALLEN: Excuse me, I don't...

STEPHEN MAYNE: ...at the same time in different cities is quite outrageous.

CHARLES ALLEN: I think your expression "conspire" is totally uncalled for. It so happens...

STEPHEN MAYNE: Okay, well maybe it's the same as the cash-for comment thing that you got together as a banking sector and did something.

CHARLES ALLEN: I can assure you there was absolutely no discussion of it. In fact, it's quite by accident. The fact of the matter is, these banks all close at the end of September and by the time you have put the accounts together and try to get it in before Christmas, which is really sensible because otherwise you go - and by the time you have the annual general meeting everything's very much history - you actually end up in this week. So, that's the reason that it's obviously happened that way.
Here is an edited transcript of our exchanges at the 2003 NAB AGM.

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STEPHEN MAYNE: All right, do you think you can next year speak to the other banks and just arrange to have them on different days?

CHARLES ALLEN: I think we'll probably say, well, that's the day with respect going to have our general meeting; kindly have yours on another day - and they won't take any notice, I would think, but anyhow. Yes, second question, Mr Mayne?

STEPHEN MAYNE: Can you tell us - there's been very little in the press here about the class action over HomeSide launched in New York. Can you give us any more detail about that and the way you're going to approach informing shareholders as that unfolds?

CHARLES ALLEN: Well, that has no substance, that claim, but perhaps - maybe David, you'd like to make some comment?

MR KRASNOSTEIN: That class action brought in New York is at a very preliminary stage of US legal proceedings. It is unclear at this stage how that will proceed.

CHARLES ALLEN: Do you want to come up here - is that better?

MR KRASNOSTEIN: Yes, that's better. The US class action is at a very preliminary stage in the proceedings in New York. It is very unclear at this stage how that matter will proceed. We believe from what we've seen to date, that it is ill-founded, but we take those matters very seriously. Litigation in the United States, as you'd appreciate, tends to be a long and drawn-out affair and we will obviously keep people informed as there are any material developments, but I expect that will be a long matter.

STEPHEN MAYNE: Just one other issue, Chairman: I'd just like to get a comment from you on your overall approach to corporate governance. Currently, I think you're the second or third biggest player in terms of investing in Australia representing retirement savings. If we do get to take over the AMP, you'll be the pre-eminent player, so you'll be the leader in investing in Australia and representing investors. What have you done they're MLC over the past year in terms of governance? Can you name a situation where you've actually taken a stand; where you've made a difference?

Because as far as I've seen, there has never been anything that's been public that the NAB, through MLC, has done to drive better governance in a company. And then of course you have your own governance with HomeSide where no directors were held responsible, you had the Chris Lewis situation which has been raised at previous AGMs. An example of the sites used, the leading mutual funds in the US publish how they vote as an example of good governance. I'd ask whether the NAB would consider doing that, given they have such a pre-eminent role, and any other steps you are taking to improve your own governance and governance that you drive through the vast number of companies that you invest in?

CHARLES ALLEN: Do you want to make some comments Mr...

SPEAKER: You may be aware that our wharf management business is predicated on a manager-of-managers approach where investment managers that we contract to manager our customers' funds make decisions that you refer to and they would act as they see appropriately. It is not MLC that makes those decisions but the investment managers that we contract from time to time to manage the funds.

CHARLES ALLEN: Thank you, Mr Mayne.

Go here for a full chronological list of edited AGM transcripts available from the past decade of shareholder activism.

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