6 questions lodged at 2024 National Storage hybrid AGM
October 23, 2024
Below is the text of the 6 written questions submitted at the 2024 National Storage hybrid AGM held on October 23, plus a summary of the answers and some video grabs via Twitter. Two were ignored, the proxies weren't disclosed early and the biggest protest vote was 9% against the rem report.
Q1. Did any of the 5 main proxy advisers - ACSI, Ownership Matters, Glass Lewis, ISS and ASA - recommend a vote against any of today's resolutions, including this rem report item? If so, what reasons did they give? Please don't say they are confidential. It is standard for companies to be across this detail on the voting recommendations and inform shareholders where relevant without publishing the full proxy adviser reports, of course.
Answer: The chair said only two issued reports and they recommended in favour of all resolutions. Watch video of exchange via Twitter.
Q2. There was a 9% protest vote on the proxies for this rem report item. Which proxy adviser recommended against and do you know what the issue was? Corporate voting is not a secret ballot in Australia so have you investigated who voted against and why?
Answer: The chair was unaware who voted against but said they would investigate. Watch video of exchange via Twitter.
Q3. Could the CEO summarise his past LTI grants as to whether they have vested or lapsed. Also, has he ever sold any securities in the company or bought any market without relying on an incentive scheme to build his equity position in the company? Please don't say look it up in the annual report and through ASX announcements. It's complicated and the CEO could factually summarise the situation in 60 seconds.
Answer: The chair read a scripted response seemingly prepared by the CEO who then chimed in to say it took less than 60 seconds. Watch video of exchange via Twitter.
Q4. Why are you seeking this approval? Next time you raise capital, will you take a pro-rata renounceable approach which treats all shareholders equally, rather than selective raisings that don't respect the property rights of existing holders?
Answer: The chair said it was too refresh to placement capacity which he claimed was good corporate governance. Rubbish. Watch video of exchange via Twitter.
Q5. The annual report says we have almost 8,000 shareholders. How many of them have voted or participated in today's hybrid meeting? If you don't know the shareholder participation numbers now, please answer the question when disclosing the poll results to the ASX later today, by including the data on how many shareholders voted for and against each item, similar to what happens with a scheme of arrangement. Such disclosure today will provide a better gauge of retail shareholder sentiment and insight into the chronically low retail shareholder voting participation rates in Australia, particularly since the move away from paper. The likes of likes of Qantas, ASX, Metcash, Altium, AUI, Dexus, Webjet, Tabcorp, Myer and even Suncorp yesterday have moved to scheme-like voting disclosure after AGMs. You've got the data, so why not let the sun shine in? Also, will you agree to disclose the proxy position with the formal addresses at next year's AGM as many companies now do?
Not asked.
Q6. Our market cap is currently $3.46 billion and the claimed net assets are $3.5 billion so we're bang on with the market. Well done to auditor Wade Hansen. 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 and in the works. The ASX is losing long standing names such as CSR, Boral, Blackmores, Newcrest and Crown which have all disappeared over the past 2 years. There is a clear mis-pricing between public markets and private markets. Why are public markets not valuing ASX listed companies like ours more highly and what are we doing to avoid being gobbled up like so many other companies companies. Does the chair agree this is a problem for the nation, particularly with so few new floats replenishing the ASX ranks?
Not asked.
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