2009 Transfield Services AGM

January 7, 2010

The 2009 Transfield Services AGM held in Sydney on November 4 was a cracker for the detail of information disclosed to shareholders.

The full exchanges have been packaged up in this single audio file whilst the individual debates have been broken down into the following audio files:

You owe us heavily diluted retail shareholders a share purchase plan
Chairman Tony Shepherd and the Belgiorno-Nettis family both acknowledged the arguments for an SPP after last year's heavily discounted institutional placement and the inability of retail investors to apply for "overs" in the entitlement offer, which finished only 63% subscribed.

Why did the new CEO embrace write-offs when the last bloke said everything was fine?
An interesting debate about the recent US write-off which left the balance sheet looking even more conservative given that the market of $1.7 billion is now almost double claimed net assets.

Well done for putting the new CEO up for election
Dr Peter Goode was elected to the board for three years when the majority of companies use the Corps Law exemption granted to the managing director.

The chairman's margin calls, tenure and Leighton relationship
Tony Shepherd openly admitted to his financial problems last year and also highlighted that he'd resigned from the Leighton-run Aquasure consortium which run the Victorian desalination plant contract. Certainly wasn't a good look to be associated with Leighton after its outrageous $450 million damages claim against ConnectEast, which is chaired by Shepherd and was partly put together by Leighton itself as one of the original sponsors.

How leveraged are the Belgiorno-Nettis directors and are they now over-represented?
Seemed very strange to have the family claim to have no leverage at all over their much-diminished 14% stake when they didn't have the financial capacity to take up last year's emergency 1-for-1 entitlement offer.

Why did you punt PwC as auditor?
The out-going auditor got up to say he was fine with a process that saw his firm kicked out of the audit and also lose Transfield's tax work.

Well done on remuneration and for running an excellent AGM
With more than 90% in favour, the shareholders clearly are comfortable Transfield has alignment with its executives.