Shareholders back Colonial

Colonial Motor Company’s shareholders have voted to pass all the resolutions put forward at the group’s annual general meeting despite opposition from the New Zealand Shareholders’ Association (NZSA).

Ahead of the meeting in Wellington on November 10, the NZSA stated it would not be supporting the four resolutions on the agenda over concerns about the listed company’s disclosure to investors.

Despite the association going ahead with its threat, Colonial’s other shareholders showed overwhelming support for the business and each of the resolutions passed with at least 95 per cent of votes in favour. 

A resolution to re-elect Stuart Gibbons as a director received 95.3 per cent of votes in favour and 4.7 against.

The three other resolutions at the meeting – to re-elect Graeme Gibbons as a director, to increase the annual remuneration payable to directors from $305,000 to $330,000, and the ongoing appointment of auditor Grant Thornton – all passed with only 2.5 per cent of votes against.

Oliver Mander, chief executive of the NZSA, attended Colonial’s AGM and asked questions about the annual report and its lack of climate information, reports the NBR.

He also raised questions about how the company sets remuneration for directors and the disclosure about reviewing directors’ fees.

Ashley Waugh, Colonial’s chairman, told shareholders the business has a legal obligation to report climate details from next year and work was being done to prepare for that.

The NBR says Waugh also explained its directors’ fees were reviewed every two years and the final rate was based on other companies with a similar market cap and revenue.