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Nov 13, 2009

David Coe’s mystifying board election

The likes of the Business Council of Australia and Australian Institute of Company Directors need not be too concerned about the "two strikes" rule -- David Coe and RHG just proved as much.

Adam Schwab — Business director and commentator

Adam Schwab

Business director and commentator

There has been an enormous level of angst from corporate Australia directed towards Productivity Commission’s proposed “two-strikes” rule. The rule suggested that any company that had its remuneration report resolution rejected by more than a quarter of voting shareholders face their entire board spilled, with all directors then placed for reelection at a general meeting. While the rule appears draconian, it is in reality quite absurd — for the simple reason that it appears Australian shareholders would support Charles Ponzi or Bernie Madoff for election — so long as they were board-endorsed candidates.

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