Voting Results - Under the Surface
The 116 signatories to the original EGM request will no doubt recall the very first resolution that was put to the Board at that time:
" That the non-renounceable pro rata entitlements issue announced by the company to the ASX on 7th November 2008 be withdrawn and, if deemed necessary by the board, the offer is to be reissued on terms that permit the issue of no more than 20% of currently issued capital."
This was in fact the key issue that triggered the entire EGM action. The giving away of control of our company without shareholder consultation. In fact the 'collective' were never fundamentally opposed to the rights issue, we simply believed that such a massive dilution of our share register was a matter that company should be obliged to explain to shareholders properly, and to convince them it was in their best interests, and give them a solid reason to take part in the issue personally. A shareholder vote by EGM is the proper way to do so.
Had you had the opportunity to have a say on this issue it could well have passed, but ONLY if the company had been able to convince YOU the owners. With the entitlements issue called at an all time low for shareholder trust, it was the ideal time for the ‘sell off to Global’ to succeed at a rock bottom price.
Given that this key issue of giving away control with or without your permission is what this was all about lets take a look at how things would have turned out...
As you are aware, all shareholder resolutions were defeated but looking under the surface of the numbers is a clear and massive demonstration of shareholder will which has been trampled upon.
ALL SHAREHOLDER RESOLUTIONS WOULD HAVE PASSED ON AN OVERWHELMING MAJORITY WITH NO SHORTFALL SHARE ISSUE.
For this we hand out a massive thank you to all of the shareholders that gave a damn and took part in the move to clean up Cityview and try to steer it onto a healthier path.
The Statistics:
First let’s look at the actual numbers of shareholders that voted in favour of the shareholder resolutions. This is not the number of votes cast but the actual number of individuals. By removing the distortionary effect of a few very large shareholders this gives us a good indication of sentiment. In fact, almost 9 out of 10 shareholders voted FOR the shareholder resolutions in actual holder numbers.
That votes against the shareholder resolutions of course includes any directors, employees and their families and known friendlies of the company.
| Resolution | % of Shareholders in Favour | Resolution | % of Shareholders in Favour |
|---|---|---|---|
| 3 - Removal of Director (Mark Smyth) | 83% | 8a - Election of Director (Steven P Coughlan) | 85% |
| 4 - Advisory (Forward Strategy Plan - Legal Title Disclosure) | 86% | 8b - Election of Director (Susan E Turner) | 84% |
| 5 - Advisory (Long Term Strategy Plan) | 86% | 9 - Election of Director (Timothy M Jones) | 83% |
| 6 - Advisory (Suspend purchase of Fortitude shares until valuation and verification of legal title. | 86% | 10 - Election of Director (Alan J Paxton) | 83% |
| 7 - Advisory (Audit of placement funds incoming and outgoing) | 86% | 11 - Remuneration of New Directors | 84% |
| 12 - Amendment to Constitution | 82% |
It perhaps worth mentioning that of the 4000 shareholders on the register we were only able to contact about 1000 due to resource limitations. Had we had the capacity to reach them all these numbers may well be far more overwhelming.
Now in stark contrast let's look at the actual voting outcome which includes the votes from our “friends of Global Investments”:
| Resolution | % of Votes in Favour | Resolution | % of Votes in Favour |
|---|---|---|---|
| 3 - Removal of Director (Mark Smyth) | 23% | 8a - Election of Director (Steven P Coughlan) | 25% |
| 4 - Advisory (Forward Strategy Plan - Legal Title Disclosure) | 27% | 8b - Election of Director (Susan E Turner) | 25% |
| 5 - Advisory (Long Term Strategy Plan) | 27% | 9 - Election of Director (Timothy M Jones) | 25% |
| 6 - Advisory (Suspend purchase of Fortitude shares until valuation and verification of legal title. | 27% | 10 - Election of Director (Alan J Paxton) | 25% |
| 7 - Advisory (Audit of placement funds incoming and outgoing) | 27% | 11 - Remuneration of New Directors | 25% |
| 12 - Amendment to Constitution | 24% |
Of course one of the first things we wondered was how the vote would have turned out if the playing field was a bit more level. We have calculated the following results on the basis that the rights issue shortfall shares were not included in the vote and that a conservative 5 million votes would not have been lost to us due to the "3rd party votes being declared invalid" debacle:
| Resolution | % of Votes in Favour | Resolution | % of Votes in Favour |
|---|---|---|---|
| 3 - Removal of Director (Mark Smyth) | 70% | 8a - Election of Director (Steven P Coughlan) | 74% |
| 4 - Advisory (Forward Strategy Plan - Legal Title Disclosure) | 80% | 8b - Election of Director (Susan E Turner) | 74% |
| 5 - Advisory (Long Term Strategy Plan) | 80% | 9 - Election of Director (Timothy M Jones) | 74% |
| 6 - Advisory (Suspend purchase of Fortitude shares until valuation and verification of legal title. | 80% | 10 - Election of Director (Alan J Paxton) | 73% |
| 7 - Advisory (Audit of placement funds incoming and outgoing) | 80% | 11 - Remuneration of New Directors | 75% |
| 12 - Amendment to Constitution | 72% |
The wishes of the overwhelming majority of shareholders are clear. This is probably not news to anyone, however it is now a matter of indisputable public record. At the time the EGM was called the message was clear that shareholders DID NOT want the rights issue to go ahead. They did not want more shares placed by Global.
It is ONLY by virtue of the Board's blatant defiance of shareholder will that ANY of the shareholder resolutions were defeated.The Next Step:
With these figures in mind, and knowing that support will only grow as more holders see the value of this sort of movement, we encourage interested holders to register as members of the private CVI forum, and even become part of the ongoing ‘think tank’ if you have something to offer.
The forum is at: http://cvi.10.forumer.com/index.php and you DO need to make a complying introductory post to gain entry. We will also verify your ID at admin stage (confidential to the rest of the forum) as it IS an invitation only forum.
Coming Soon: Full transcript of the EGM meeting. – watch this space!
Sincere thanks for all of your efforts.
CVI Shareholders Group
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