CGI Glass Lewis, ISS recommend against Articore board spill
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The news: Proxy advisors ISS and CGI Glass Lewis have recommended that Articore shareholders vote against all resolutions at the company’s upcoming extraordinary general meeting, aimed at removing current directors.
The context: Disgruntled Articore investors, led by the company’s former chairman Richard Cawsey and founder Martin Hosking, who represent a combined 16% of the company’s shares, are seeking to oust the board.
Shareholders successfully removed Anne Ward and Ben Heap as chair and director in June, as first reported by the AFR. The masthead also reported that the current board offered Hosking and Cawsey $50,000 to abandon their campaign against the board.
An ASX announcement filed on Wednesday evening says that both proxy advisors, in separate reports, found the requisitioning shareholders including Cawsey and Hosking, have failed to present a significantly compelling case for change and strongly critiqued their rationale for seeking to spill the Articore board.
ISS and CGI Glass Lewis added that the board has already undergone “significant refreshment” and that Articore’s recent financials showed it achieve its strongest Q4 performance in five years.
The proxy advisors recommend that shareholders vote against the resolutions at the upcoming extraordinary general meeting on 22 August.
Articore is due to release FY25 earnings on Thursday 14 August.
The numbers: With a current market capitalisation of $66.9 million, shares in Articore have plummeted since their $7 peak during the pandemic, now trading at $0.26 as of market close on Wednesday 13 August.
The sources: ASX filing, AFR
