6 questions lodged at 2024 Contact Energy hybrid AGM

Q1. New Zealand is becoming a governance backwater as it continues to resist mandating annual voting on remuneration reports, which is standard in many countries around the world. Will the chair undertake to consult with major shareholders and lead a board discussion on the issue of whether you will voluntarily put up a remuneration report resolution for an advisory vote at next year's AGM?

Answer: The chair Rob McDonald was a little offended on behalf of the country saying New Zealand is one of the least corrupt countries in the world. He then claimed shareholders had provided positive feedback on rem. Well why not let us vote 98% in favour of a rem report then? Was a blunt rejection unfortunately. Watch video of exchange via Twitter.

Q2. Could new director David Gibson and the chair comment on the recruitment process that led to his appointment to the board to fill a casual vacancy after last year's AGM. Which recruitment firm was involved, did the full board interview David and did they interview any other candidates? Did David know any of our directors before engaging with the recruitment process?

Answer: The chair named SEQEL Partners as the recruitment firm which ran the process. Watch video of exchange via Twitter.

Q3. Sandra Dodds was appointed to the Snowy Hydro board in July 2019 and chairs the audit committee. In October 2023, the ABC 4 Corners program produced a 45 minute television program on the blowouts and delays in its $12b Snowy 2.0 project. Four Corners contended that Snowy Hydro failed to inform the Australian public about problems as they emerged. CVs matter for directors so could Sandra provide a response in terms of what went wrong at Snowy Hydro, any lessons learnt and exactly what she did to try and set things right.

Answer: Credit to the chair for letting Sandra Dodds answer the question but she dodged it by saying she was only responsible to Federal Finance Minister Katy Gallagher when it comes to disclosure issues. She offered nothing on what went wrong at Snowy Hydro. Watch video of exchange via Twitter.

Q4. What would happen if shareholders voted down this strange resolution that pops up at every NZSE listed company to approve the authority for the board to approve payments to the external auditor? Has it ever been voted down anywhere and why does the government make us bother with this? And staying with issues around the auditor, how long have Ernst & Young had the gig, when did it last go to a competitive tender and when is it next scheduled to go to a competitive tender?

Answer: The chair seemed to agree it was anachronistic and pointed to a current review of the NZ Companies Act which will hopefully remove it. Watch video of exchange via Twitter.

Q5. The ASX is currently in the midst of an unprecedented deluge of takeovers that has contributed to listed entities falling by 176 to 2118 after 21 straight months of declined. There have been 27 major takeovers above $200m completed so far in 2024. Why are public markets not valuing ASX and NZSE listed companies like ours more highly and what special protections do we have to avoid being taken over? If AGL, Origin Energy or Snowy Hydro bid for Contact, what regulatory or legislative approvals would be required?

Answer: The chair said foreign takeovers in NZ can be a long and convoluted process. Watch video of exchange via Twitter.

Q6. It must feel quite strange having the former CEO of a public company, Chris Luxon, suddenly become Prime Minister & it is great that he'll join us at next week's big opening. Did any of our directors or senior executives know Mr Luxon before he went into politics and are there early signs that the new govt is more pro business than the previous govt. If there is 1 policy change or investment the Luxon govt could do to assist our business, what would it be? Also, any thoughts on what Trump's election could mean for us?

Answer: The chair Rob McDonald was Luxon's CFO at Air New Zealand for 5 years so, yes, he does know him. Said faster project approvals for renewables investments was his biggest ask and wouldn't buy in on Trump. Watch video of exchange via Twitter.

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