11 questions lodged at 2023 Objective Corp AGM
December 2, 2023
Below is the text of the 6 written questions lodged at the 2023 Objective Corp hybrid AGM held on November 29, plus a summary of the answers and some video grabs via Twitter. Proxies were disclosed in these 51 formal slides and there were no major protest votes.
Q1. After a 10% vote against last year's constitutional amendment to allow for virtual meetings, it is disappointing you went ahead and held one knowing that more than 10 companies had similar amendments voted down because shareholders prefer hybrid AGMs. Will you return to having a hybrid meeting in 2024? What is wrong with meeting your shareholders in person?
Answer: There was no promise of returning to a hybrid next year and it sounded like he'll stay fully virtual. Watch video of exchange via Twitter.
Q2. Given that we have a market cap of around $1 billion, isn't it time we moved on from small audit firm Pitcher Partners and went with one of Big Four global accounting firms, such as PwC. Could the Pitcher Partners signing partner speak to any other billion dollar listed companies that it audits.
Answer: The auditor piped up reeling off the names of some other big clients. Watch video of exchange via Twitter.
Q3. Objective Corp is one of the most illiquid and least traded $1 billion companies because the founder and CEO Tony Walls controls about 65% of the total shares on issue. Could Tony comment as to why he doesn't sell down to diversify his personal investments and provide some more liquidity for public investors.
Answer: Tony said co-founder Tony Fisher was an equal shareholder back in the day and his sell-down had delivered liquidity. He has many other investment outside Objective and doesn't intend to sell down. He mentioned Reece also having a majority family shareholder. Watch video of exchange via Twitter.
Q4. When is Objective Corp going to appoint its first female director? Why draw attention to yourselves as the only listed $1 billion company remaining with no female directors? What is being a hold out on this issue actually achieving? Have you tried previously and will you sort this issue out before next year's AGM?
Answer: Tony said it has been discussed internally and they are looking for the best directors to serve on the board and he doesn't differentiate. Watch video of exchange via Twitter.
Q5. There doesn't appear to be any record of last year's AGM debate on the company website. Could the chair undertake to publish a full archive of the AGM webcast online for the 3000 retail shareholders who weren't able to make it to the needlessly early 8.30am start.
Answer: There was no promise of a webcast. Watch video of exchange via Twitter.
Q6. Seeing as Tony has never sold a share and has also bought back 30% of the total shares on issue over the years, why doesn't he just complete the process and take the whole company private? What is the point of being listed if the biggest shareholder is never going to publicly trade a share and use profits to progressively take out other shareholders? Where does this end?
Answer: Tony said Objective has benefitted from the transparency and profile from being listed. Watch video of exchange via Twitter.
Q7. Great to hear Tony talk about diversity and Objective being a great place for women to work, so why won't he agree to appoint a female director to the board. Are government clients raising this issue with us when we tender or renew clients?
Answer: Tony said it has been discussed internally and they are looking for the best directors to serve on the board and he doesn't differentiate. Watch video of exchange via Twitter.
Q8. I'm a local government councillor at City of Manningham in Melbourne. Do you know if we are a client? How are clients that aren't using Built coping and are there any monopoly concerns given we are the dominant provider.
Answer: question wrangler Ben Tregonning said Manningham is a client and Tony fobbed off monopoly concerns saying there is plenty of competition. Watch video of exchange via Twitter.
Q9. Companies normally lodged their formal addresses with the ASX before the AGM starts. Could you please lodge Tony's excellent and informative slides with the ASX. Also, next year could you please also disclose the proxies to the ASX with the formal addresses.
Q10. Last question. Does Tony have a relationship with Technology One founder Adrian Di Marco given the similarities of building fabulous listed tech companies with Australian local government as a major client? Have we ever had merger talks? Great presentation today and well done?
Answer: Yes, he does know Adrian but there have been no merger discussions. Watch video of exchange via Twitter.
Finally, Tony signed off thanking the board, who we did hear from or see for the entirety of the meeting.
Copyright © 2024 The Mayne Report. All rights reserved
