7 questions lodged at 2025 Virgin Australia hybrid AGM

Q1. Then Queensland premier Peter Beattie did a deal with Sir Richard Branson 25 years ago to secure Virgin Blue's head office for Queensland when the airline was first launched. Is our company still bound by that agreement or would we free to move the head office to Sydney or Brisbane if we wanted to. Does it make sense for the airline to be based in Brisbane and are we receiving any ongoing incentives from the Queensland government to retain the head office in Brisbane?

Answer: The chair Peter Warne said they have a good relationship with the QIC and have no plans to move the head office. It wasn't clear if they are contractually tied to staying in Brisbane. Watch video of exchange via Twitter.

Q2. Why are all 8 directors up for election today and would chair Peter Warne be open to continuing annual elections of directors at future AGMs as this is best practice and mandatory in other countries such as the UK and US? TWE and BHP both do voluntary annual director elections when they don't have to so why don't we join this elite best practice group next year? Otherwise, you've got to work out which directors are also up next year for the second straight year. Just put everyone up so you don't have to have that discussion.

Answer: The chair Peter Warne didn't respond and Belinda Conrad, who chaired this item, said they all had to be up straight after the float and would take the annual director elections request into account although it wasn't the current plan. Watch video of exchange via Twitter.

Q3. Who originally invited Peter Warne to consult to Virgin in 2023 and was it with a view to him chairing the public company down the track?

Answer: The chair said a headhunter retained by Bain was the original connection. Watch video of exchange via Twitter.

Q4. When disclosing the outcome of voting on all resolutions today, including this remuneration item, please advise the ASX how many shareholders voted for and against each item, similar to with a scheme of arrangement? This will provide a better gauge of retail shareholder sentiment on all resolutions and insight into the chronically low retail shareholder participation rate. The likes of Qantas, ASX, Suncorp, Tabcorp, Myer, Flight Centre, Stockland and even our own share registry provider Computershare have all voluntarily provided this data at their most recent AGMs. You've got the data, so why not let the sun shine in?

Answer: The chair Peter Warne said he hadn't really thought about this so doubt it will happen. Watch video of exchange via Twitter.

Q5. What is the legal and contractual basis on which Virgin Group has a nominee director on this board. Is this connected with the use of the Virgin brand or is it linked to the size of Virgin Group's shareholding? How is it fair that Qatar and Virgin Group both get one seat on the board when Qatar's shareholding is so much larger? Also, what is Warwick's history with Richard Branson?

Answer: The chair Peter Warne explained that it is related to the use of the Virgin brand name and Warwick Negus said his history goes back to the original 2021 Virgin Blue capital raising. Watch video of exchange via Twitter.

Q6. Could Michael Murphy please comment on whether the 3 Bain representatives on the board caucus before board meetings to take agreed Bain positions into the meeting? Which of the 3 Bain nominees would be regarded as the leader of the group? Also, could Michael comment on whether Bain prefers to receive returns from dividends or share sales. If Virgin generates franking credits, would they be of use to Bain? In other words, does Bain have a different tax incentive to Australian resident retail shareholders when it comes to capital management and dividends?

Answer: Michael Murphy said the 3 Bain nominees on the Virgin board don't have a rank order and don't caucus before Virgin board meetings. He didn't really address the tax and franking credits component of the question. Watch video of exchange via Twitter.

Q7. Who does Dimitri report to at Qatar Airways? Have there been any examples where Dimitri has had to leave a board meeting or not be provided information due to sensitivities. Was Dimitri's appointment a negotiation where our board had to agree or did Qatar have a right to appoint whoever they liked?

Answer: The chair said Dimitri does get occasionally booted out of Virgin Australia board meetings due to commercial sensitivities and Dimitri said he reports to the CEO and CFO and Qatar Airways. He worked for them back in the day but these days is CEO of ASC-listed Sunrice. Watch video of exchange via Twitter.

Copyright © 2025 The Mayne Report. All rights reserved

• share
  Share
  • 
    Facebook
  • 
    Twitter
  • email
    Email
  • print
    Print
  • link
    Copy Link
  • cancel
    Cancel