7 questions lodged at 2024 Nanosonics hybrid AGM
November 17, 2024
Below is the text of the 7 written questions submitted at the 95 minute Nanosonics hybrid AGM held on November 12 2024, plus a summary of the answers and some video grabs via Twitter. The proxies were commendably disclosed early with the formals and there were no protest votes. The meeting was prematurely closed with 9 un-asked online questions, 2 of which were mine.
Q1. How long has our external audit firm been in place, when did we last run a competitive tender for the external audit and when do we next intend to run a competitive tender for the external audit?
Answer: The chair said EY won a competitive tender in 2017 but there has been no tender since and are no current plans for a tender either. Watch video of exchange via Twitter.
Q2. Thank you for disclosing the proxies early with the formal addresses and well done for achieving more than 98% support for all resolutions, including this remuneration report item. When disclosing the outcome of voting on all resolutions today, including the rem report, could you please advise the ASX how many shareholders voted for and against each item, similar to what happens with a scheme of arrangement? This will provide a better gauge of retail shareholder sentiment on all resolutions and insight into the chronically low retail shareholder participation rate. Others have already blazed the trail as this was a voluntary disclosure initiative adopted by the likes of Qantas, ASX, Metcash, AUI, Webjet, Suncorp, Tabcorp and Myer in recent years. You've got the data, so why not let the sun shine in?
Answer: The microphone wasn't working for those of us online and the question wrangler butchered the questions but the chair did commit to scheme-like voting disclosure, but then failed to deliver it in these voting results. 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 176 or 7.5% to 2,118 since June 2022, including 21 straight months of declines. There have already been 27 major takeovers above $200m completed so far this calendar year. The ASX is losing long standing names such as CSR, Boral, Blackmores, Newcrest and Crown which have all disappeared over the past 3 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. Does the chair agree this is a problem for the nation, particularly with so few new floats replenishing the ASX ranks?
Answer: Not asked.
Q4. We're making a big push into the US market. What does the re-election of Donald Trump likely mean for our business and what did he do last time that was relevant for our sector? Are there any ways that a major tariff war between the US and China could impact our business in a material way?
Answer: Another shareholder asked this question from the floor. Watch video of response via Twitter.
Q5. Could the CEO summarise his past LTI grants as to whether they have vested or lapsed. Also, has he ever sold any ordinary shares in the company or bought any on 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 CEO Michael Kavanagh provided an excellent summary of his share trading and vesting history. Watch video of exchange via Twitter.
Q6. Could the CEO please summarise the extent and breadth of engagement he has with analysts, brokers, fund managers and institutional investors after each 6 monthly results release to the ASX? How does that compare with what the company does for its circa 15,000 retail shareholders. Have you thought about having an investor day and, if so, would you consider inviting retail shareholders to attend? Which retail brokers cover us and are we happy with the quality and breadth of analyst coverage across the retail broker market? Finally, thank you for offering a hybrid AGM today which maximises retail shareholder participation and will you commit to maintaining the excellent hybrid AGM model going forward?
Answer: Not asked.
Q7. Having already served 8 years, is this Marie McDonald's last 3 year term on the board or will she be recontesting again in 2027?
Answer: The chair didn't invite Marie to respond and waffled about assessing this situation each year. A 10 year limit should apply so they should have been able to at least say it would probably be Marie's last term. Watch video of exchange via Twitter.
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