AGMs

9 questions asked at 2022 Collins Foods AGM


September 4, 2022

These 9 questions were submitted at the Collins Foods AGM held on Friday, September 2 but less than half were actually asked. The meeting only lasted 61 minutes and no sign of an AGM archive.

Q1. Given we have a market capitalisation of $1.15 billion, why not just fully repay the full $4.21 million in JobKeeper payments that we received rather than only $1.84 million, leaving a net payment of $2.37 million. The $90 billion Jobkeeper scheme was massively rorted with $38 billion going to recipients who didn't qualify under the rules of the scheme. The likes of CIMIC, Iluka Resources, Credit Corp, Santos, Centuria, Wesfarmers and REA Group repaid all of their Jobkeeper claims so why don't we do the same?

Q2. Webjet adopted a new constitution at yesterday's AGM with no maximum or minimum numbers of directors which is the new best practice as it allows shareholders to decide how many directors should serve on the board. Similarly, Treasury Wine Estates has voluntarily moved to annual elections for directors, which is also best practice. Could the chair and Mark Hawthorne both comment on what they think of these changes and what are the current constitutional numerical limits on our board size?

Answer: Currently minimum of 3 and maximum of 10. System works well. No strong basis for change.

Q3. Well done for disclosing the proxy votes to the ASX with the formal addresses before the meeting began and for once again achieving more than 95% in favour of all resolutions. What is the history of pre-AGM proxy disclosure and which of the 5 main proxy advisers - ACSI, Ownership Matters, Glass Lewis, ISS and ASA - issued reports recommending voting on today's resolutions.

Q4. Given the interesting discussions across a range of topics today, including the remuneration report, could the chair undertake to make an archived copy of the full webcast plus a full transcript of proceedings available on the company's website? Well done for publishing the last two AGM webcasts on Youtube but could you deliver the transparency cherry on top by also publishing a full transcript. The likes of Nine, AGL, ASX, ANZ, CIMIC, Domino's, G8 Education and Lend Lease all produced their 1st AGM transcripts in 2021. Will you follow suit today?

Answer: Barrister chair Robert Kaye SC said "we'll give that serious consideration".

Q5. When disclosing the outcome of voting on all resolutions today, including this performance rights grant, could you please advise the ASX how many shareholders voted for and against each item, similar to what happens with a scheme of arrangement? This will provide a better gauge of retail shareholder sentiment on all resolutions and was a disclosure initiative adopted by the likes of Metcash, Altium and Dexus after their 2021 AGMs, plus Webjet also agreed to do this for the first time after its AGM yesterday.

Answer: We're not Webjet and haven't considered it. Happy to chat with Mr Mayne about this after the meeting. All our proxy votes are announced pre-AGM and all proxy advisers cover us. All proxy advisers supported all resolutions this year.

Q6. Is it correct that Russell Tate is our oldest director? How old is he and could we please start disclosing the age of all directors in their profiles on our website, the annual report, plus in the notice of meeting when they are seeking re-election? This is important for assessing board diversity. Is Russell intending to retire when his current 3 year term expires at next year's AGM and what sort of formal or informal tenure limits do we have for directors?

Q7. There aren't many practicing barristers in the public company director's club. Could chair Kaye please explain the background of how he finished up as chair of Collins Foods and wouldn't it make more sense to have a chair and CEO living in the same city as the company head quarters. Also, how much longer is the chair planning to serve and how many days he work does he spent on Collins Foods matters?

Q8. McDonalds is the biggest employee of school kids in the hospitality business. Further to that earlier answer, what recruitment steps do we take to make ourselves more attractive than McDonalds. Do we pay the same award rates as McDonalds or are our pay practices different?

Q9. How many staff own shares in the business and have we considered introducing a staff share scheme.