FIRST Advisers tracks Activism monthly and it has been apparent since the beginning of the pandemic in early 2020 that activism in Australia was in a slump, with few demands making it through to a (virtual) company meeting. There have been on average two new campaigns a month over the past six months, with all of them either being won by the activist or settled before the meeting. Many of those companies that have been targeted have also been in the sights of shareholders on a regular basis, often over a long period. As a result, the total number of Companies targeted over the past year is less than the number of Activist campaigns. In Australia, the most common reason for shareholders to turn Activist is dissatisfaction with the composition of the board.
This month is no different to the pattern of the past six months, with two Companies targeted in July, one of which has been the target of numerous demands by the same shareholders over the past year. Additionally, only one requisitioned meeting took place this month.
Excelsior Capital announced it had received a 249D notice from shareholders calling themselves ‘ECL Activists’. They were looking to remove a director of the company, having previously requisitioned multiple meetings looking to wind up and appoint liquidators to the Company, as well as remove directors, and change the Company’s Constitution. Excelsior has set the meeting for the 27th of August and has urged shareholders to vote against the removal of Leanne Catelan as Director.
Taking a different approach to the normal notices received, 1414 Degrees received a notice from one of its directors, Kevin Moriarty, advising that he wished to convene a meeting to remove two current Directors and elect two directors in their place. The directors he put forward were the nominees of a Company with which he is associated. A few days later the Board of 1414 announced that they would put forward a resolution to remove Moriarty as a director. Following the announcement, Moriarty resigned and withdrew his notice to convene a meeting.
PepinNini Minerals received a notice at the beginning of June from Peter Proksa to appoint two nominees and remove one Director. Despite the company urging shareholders to vote against the resolutions, the targeted director, Robert (Wei) Sun, resigned the day before the meeting and the resolutions to appoint the two new directors were carried at the meeting.
New Activism
| Activist/s | Target | Approach | Requisition | Lodged |
|---|---|---|---|---|
| Kevin Moriarty | 1414 Degrees | Director of 1414 - as per the Company's Constituion | Remove two directors and replace with two nominees. | 12/07/2021 |
| Concerned Shareholders | Excelsior Capital | 249D Notice | Remove one of the Directors. | 12/07/2021 |
Resolved Campaigns
| Activist/s | Target | Meeting | Outcome | Resolution Period |
|---|---|---|---|---|
| Kevin Moriarty | 1414 Degrees | Withdrawn | Moriarty resigned as a director of 1414 and withdrew his notice to convene a meeting. | 1 week |
| Peter Proksa | PepinNini Minerals | Activists Win at Meeting | The two resolutions relating to the nominations put forward were carried and the resolution to remove Robert (Wei) Sun as a director was withdrawn after his resignation the day before the meeting. | 5 weeks |
Three Months Activity
| Activist/s Action | May | Jun | Jul |
|---|---|---|---|
| New Activist Campaigns | 1 | 2 | 2 |
| Activists Win at Meeting | 1 | 0 | 1 |
| Company Wins at Meeting | 0 | 0 | 0 |
| Settled before meeting / Requisition withdrawn | 2 | 0 | 1 |