After
my 22 board tilts at public company boards over the past six years,
Macquarie Bank has today set a new precedent for rejecting a
nomination to stand for election.

I
faxed a signed letter of
nomination with an accompanying letter supporting the nomination from
my dad, also a Macquarie Bank shareholder, at 4.55pm last night.
Unsigned versions were also emailed directly to company secretary
Dennis Leong and the signed originals were dropped in last night’s
snail mail heading to the company’s head office at 1 Martin Place in
Sydney.

Based on past experience, faxing signed letters to head
office has been sufficient but Macquarie has rejected the nomination
today as Mr Leong explains in this email:

Please be advised that this does not constitute a
valid nomination for election as a Voting Director under Macquarie Bank
Limited’s Constitution. I refer you to article 49A of the Bank’s
Constitution, which is on our website.

In
particular, I note the requirement for nominations to be in writing,
executed by the nominating member, accompanied by a consent to nomination
signed by the nominee and received by the Company at its registered
office (which is in Canberra) before the cut-off date (which on my
calculations is today, Tuesday 30 May 2006) but you should of course
take your own legal advice.

Regards
Dennis Leong
Company Secretary
Macquarie Bank Limited

C’mon
Dennis, since when has it mattered whether you fax head office or the
registered office? I’ll fax the registered office in Canberra before
5pm just to make sure and let’s hope we don’t get any more silly
legalese.

The tilt is based on the very simple platform that
Macquarie Bank adopt the standard Wall Street policy of banning
employees from taking up shares in floats or capital raisings they are
handling. Macquarie Millionaires have long leap-frogged ahead of
clients to scoop up lucrative allocations when such a practice is
banned by most US investment banks, and chairman David Clarke has
defended the practice when I’ve raised concerns at recent AGMs.

Peter Fray

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