August 22, 2008

Australian agribusiness AWB Ltd. late Thursday (August 21) extended a voting period to Sep. 3 for A Class shareholders on proposed constitutional change after falling just short of a key change threshold.

Chairman Brendan Stewart said 74.7 percent of A Class shareholders who voted prior to Thursday's shareholder meeting favored the proposed change, falling just short of the 75 percent needed before the change can occur, with only 27 percent of total A Class shareholders voting.

"Given the importance of this vote, the time for A Class shareholders to vote has been extended to ensure that there is sufficient time and opportunity to raise participation and secure a decisive result," Stewart said in a statement issued after the meeting was adjourned.

Support for the change has risen since February, when it could only attract 62 percent backing from A Class shareholders.

"With the harvest on our doorstep, extending the vote is the right decision as constitutional reform will ensure we are match fit to offer Australian wheat growers the most competitive commercial offer possible," he said.

If the change proceeds, a two-tier structure whereby A-class wheat grower shareholders elect the majority of board members will be scrapped, A-class shares would be redeemed and B-class shareholders, already the company's owners, would assume control.

The number of directors with agricultural experience would fall to two from seven, with the board of the company downsized. A clause that specifies that the primary objective of the company involves grain trading will be removed if the vote succeeds. AWB will remain committed to grain trading, but not as its primary role. A 10-percent cap on individual shareholdings would remain in place for three years.