Australia-Fall Out from collapsed farm sale.
AUSTRALIA-FIGHTING ON THE FARM.
CATTLE producer Australian Agricultural Company — just days after shareholders rolled its board — has appointed independent director Brett Heading as chairman.
Charles Bright, who is also a director of AAco’s 20 per cent stakeholder, Futuris Corporation, will stand down as acting chairman but remain on the board as a non-executive director.
Mr Heading chaired the extraordinary meeting this week at which shareholders overwhelmingly defeated a board recommendation to buy two major Northern Territory cattle properties. The $105 million acquisition was part of a controversial deal under which Futuris Corporation would sell its stake in AAco. Despite the defeat, Futuris intends to restart the sale process, which could include a proposal by former AAco chairman Nick Burton Taylor to buy back Futuris’ shares and cancel them.
Sources suggest Mr Bright has stood aside because of a potential conflict of interest.
The reshuffle comes a month before the annual meeting, which is expected to become a fight for the future direction of AAco , Australia ’s largest cattle company and the nation’s oldest continuing company.
Shareholders who led the revolt — Mr Burton Taylor, former director Chris Roberts and Aruna Paliulis, a director of 20 per cent shareholder IFFCO Poultry — have nominated for the board at the May 27 annual meeting.
Mr Burton Taylor told BusinessDay that after the extraordinary meeting and before the annual meeting, the company should be in caretaker mode. "The board should not embark on any further property sales," he said.
Other independent directors are Phillip Toyne, Peter Hughes and Stephen Lonie. AAco announced the appointment of Mr Hughes and Mr Lonie last week, and they joined the board on Tuesday.
Mr Heading, a corporate lawyer, was appointed to the AAco board in June. He is chairman of partners at law firm McCullough Robertson Lawyers, a member of the Takeovers Panel, and chairman of ChemGenex Pharmaceuticals.
business.theage.com.au
