There’s no denying that AGL’s board has experienced a cataclysmic event. The company’s plans to split in two have exploded, those that drove the demerger have retired hurt and billionaire environmental crusader Mike Cannon-Brookes has executed a near-unrivalled corporate coup.But what’s next for AGL remains unclear because it now exists in a governance vacuum. There is no AGL board to speak of.
The company’s Monday statement confirming the abandonment of the demerger explicitly stated it would consider approaches from other parties regarding alternative transactions. Like other institutional shareholders, Martin Currie appeared to be looking for cover - waiting to get a report from the powerful proxy advisors that could at least question the merits of the demerger.
Ownership Matters, one of the largest proxy advisors in Australia, had been struggling with Cannon-Brookes’ use of derivatives and borrowed shares which led to concerns about his commitment to retain his stake and his authority to vote. Meanwhile, even had AGL managed to secure the support of the big investors they were exposed to a revolt from their retail investors - a group that in any company traditionally sides with the board on most major matters.
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