6 questions lodged at 2024 Senetas hybrid AGM

Q1. We've got $125m in accumulated losses and a market cap of just $35m? Where did all the money go and if the chair had his time again, what would he do differently?

Answer: The chair Francis Galbally gave a potted history but at least he's seemingly made money and done well from his own investment, according to him. Watch video of exchange via Twitter.

Q2. Have there been any substantial protest votes against any items today, including this remuneration report item. If so, what concerns were raised by shareholders and do you know who voted against. Corporate voting is not a secret ballot.

Answer: The chair gave a grumpy one word answer "No" before the question wrangler even finished reading and then there was indeed an 8% protest vote against the CEO's options grant later in the meeting, although I guess that isn't "material". Watch video of exchange via Twitter.

Q3. Could chair Francis Galbally please explain the full history of his substantial shareholding in Senetas and could one of the other independent directors address the issue of whether the board has considered moving to have an independent chair? How many more years is Francis planning to serve as chair?

Answer: The chair appeared annoyed to be asked, as first doing the old "look it up yourself on the ASX" but then warmed up and provided a solid summary of the roller coaster ride since he founded the business in 1999. Watch video of exchange via Twitter.

Q4. There have been many substantial protest votes against resolutions like this during the current AGM season. It is not good practice to allow a board to selectively place up to 25% of the company's shares to anyone they like over a 12 month period, diluting the existing shareholders without compensation for their lost property rights. What is our history of doing selective placements, why are we asking for this authority and has there been a substantial protest vote against this resolution?

Answer: The chair agreed with the proposition and said they were unlikely to use the full 25% placement authority. Watch video of exchange via Twitter.

Q5. When disclosing the outcome of voting on all resolutions today, 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, including your share registry provider for the first time yesterday. You've got the data, so why not let the sun shine in?

Answer: Not asked.

Q6. What proportion of the register and how many shareholders have been excluded from voting on this item because they participated in the placement that we are retrospectively approving? What are the mechanics of how we actually check this? Is it audited?

Answer: Not asked.

Copyright © 2024 The Mayne Report. All rights reserved

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