6 questions asked at 2024 AUI hybrid AGM

Q1. Thanks for offering a genuine hybrid AGM again this year, Charles. You have moved with the times unlike Orora, Origin and CBA which are all holding non-genuine hybrid AGMs today with either voting or written questions disabled. Having turned 86 on August 26, chairman you are now the oldest director of an ASX listed company capitalised at more than $1 billion. Is it your goal to out-last Rupert Murdoch who retired from the News Corp board in November 2023 at the age of 92?

Answer: The chair said it wasn't his goal to out-last Rupert and he'd stay as long as his health allowed. Watch video of exchange via Twitter.

Q2. Rio Tinto appears to have gone over the top with this $10 billion lithium takeover, paying double the prevailing share price. Are we concerned they are losing discipline and are we now expecting BHP will follow suit and also move into the lithium market? Do we have any other lithium exposures in the portfolio, apart from Pilbara?

Answer: The chair downplayed the Pilbara Minerals investment, predicted BHP would stay focus on copper and wasn't concerned Rio had gone over the top given its overall size. Watch video of exchange via Twitter.

Q3. Australia is currently in the midst of an unprecedented deluge of takeovers that has contributed to listed entities on the ASX falling by 170 or 7.4% to 2,124 since June 2022, including 20 straight months of declines. There have already been 27 major takeovers above $200m completed so far this calendar year with another 10 deals announced & in the works. The ASX is losing long standing names such as CSR, Boral, Blackmores and Newcrest. Does the chair agree this is a problem for the nation & do we ever vote against takeovers?

Answer: The chair Charlie Goode gave an explanation about the rise of private equity and also suggested rising environmental activism against public companies was a factor. Watch video of exchange via Twitter.

Q4. The AFIC CEO recently said the excessive number of LICs had contributed to the growing NTA discounts seen in the sector. If there are too many LICs, why don't we merge with DUI? Have we ever looked into doing this and what are the arguments against it. Surely 2 chess boards are easier to manage than 1.

Answer: The chair laid out the arguments. Doesn't sound it is going to happen. Watch video of exchange via Twitter.

Q5. Is there really any difference between a special dividend and a normal dividend. It's not as if one is normal currency and the other is crypto. It's all Australian cash. Isn't this distinction just window dressing? Has any other listed company ever gone with the concept of a "long term special dividend"?

Answer: The chair gave an unconvincing explanation about normal revenues and special dividends from companies which are treated more like reserves. Watch video of exchange via Twitter.

Q6. LICs are often reluctant to propose fee cap increases because there are few institutional investors to wave it through and a determined band of retail investors who vote against every remuneration report and fee increase proposal. How many of your shareholders have voted on this resolution today and when disclosing the poll outcome to the ASX, please adopt a scheme-like policy of disclosing the outcome in both shares and shareholders, so we can understand the turnout and small holder sentiment on this issue.

Answer: The chair agreed to this last year and has backed it up again. Well done, Charlie Goode. Watch video of exchange via Twitter.

Copyright © 2024 The Mayne Report. All rights reserved

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