6 questions asked at 2024 EVT hybrid AGM
October 18, 2024
Below is the text of the 6 written questions submitted at the 75 minute 2024 EVT hybrid AGM held on October 18, plus a summary of the answers and some video grabs via Twitter. Proxies were disclosed early and there was a rem strike with 34% against.
Q1. Thank you for disclosing the proxy position to the ASX along with the formal addresses 41 minutes before the meeting commenced. We've had a remuneration strike with 34.1% or 22.57m shares voted against. The chair was unable to vote. How many shares does he control and what does he thing about the two strikes system which prevents him from voting on remuneration matters? Which of the proxy advisers covers us and which of them recommended against. What was there major concern and are we going to make any changes as a result of the strike?
Answer: The question wrangler revealed that ISS and Glass Lewis recommended against whilst Ownership Matters was in favour. The chair Alan Rydge was clearly frustrated at not being able to vote. Watch video of exchange via Twitter. Also, listen to rem chair Peter Coates provide a prepared response to the strike earlier in the meeting.
Q2. Since private equity firm BGH took over Village Roadshow, has anything changed in relation to our joint venture with Village in the Victorian cinema market. Is it performing well or suffering given the move to streaming. If either party wanted to exit this arrangement, are there pre-emptive rights and how do these work? What is the history of how this joint venture was put together in the first place?
Answer: The chair Alan Rydge gave a good explanation of the history but said pre-emptive rights were top secret. Watch video of exchange via Twitter. Listen to additional comments from CEO on challenges facing cinema business.
Q3. Alan Rydge is now into his 70s and has been chairman of our company since 1978. Is he intending to serve a full 3 year term and keep leading this company into his 80s? Could Alan comment on the leadership transition plans and ownership structure he has in mind for his controlling stake in EVT over the longer term. Is the Ramsay Healthcare situation something we are likely to see at EVT? I asked this at last year's AGM and Alan said it would be a matter for the board. Alan controls the company and has the power to control board composition so could he please inform the minority shareholders as to what he has in mind, rather than ducking the question.
Answer: The chair declined to publicly discuss his estate planning intentions but at least the questions wasn't censored and he offered some commentary. Watch video of exchange via Twitter.
Q4. The notice of meeting states that Mr Coates "may make himself available for retirement during his term to support that renewal process". Could Peter please comment on the likely timing of his departure. Is this potentially his farewell AGM? Also, after 15 years on this board, does he regard Alan Rydge to be a personal friend and can he cite any examples where he successfully argued against a position taken by Mr Rydge, demonstrating his independence?
Answer: Peter Coates did admit to being friends with the billionaire chair but also re-asserted his independence whilst declining to provide insight into board room discussions. The chair Watch video of exchange via Twitter.
Q5. As a company which does a lot of building in Australia, what has our lived experience been dealing with the CFMEU on construction jobs. Have we noticed any changes since the administrators were appointed and does Australia remains a difficult and expensive jurisdiction in which to deliver major building projects? Also, what level of employee unionisation do we have across the Australian cinema and hotel operations and does this include multiple certified enterprise agreements?
Answer: The CEO said it is building contractors not EVT which deal with the CFMEU and they have negligible unionisation across its other operations. Watch video of exchange via Twitter.
Q6. I'm still struggling to understand the history and purpose of Carlton Investments and our company's connection to that listed investment company, as opposed to the chairman's private connection to it. Could the chair please briefly summarise the history and purpose of our entanglement with Carlton Investments. Why do we own so many preference shares in Carlton Investments rather than ordinary shares? Is this something to do with control? Aren't preference shares an anachronism in 2024 and shouldn't this capital structure be modernised?
Answer: The chair gave a good explanation of the history and blamed others for rejecting an attempt to clean up the preference shares almost a decade ago. Watch video of exchange via Twitter.
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