Notice of Annual General Meeting/Proxy Form
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THE AGENCY GROUP AUSTRALIA LIMITED
ACN 118 913 232
NOTICE OF ANNUAL GENERAL MEETING
Notice is given that the Meeting will be held at:
TIME: 12.30PM AWST
DATE: 29 November 2019
PLACE: 68 Milligan Street Perth WA 6000
The business of the Meeting affects your shareholding and your vote is important.
This Notice of Meeting should be read in its entirety. If Shareholders are in doubt as to how
they should vote, they should seek advice from their professional advisers prior to voting.
The Directors have determined pursuant to Regulation 7.11.37 of the Corporations
Regulations 2001 (Cth) that the persons eligible to vote at the Meeting are those who are
registered Shareholders at 5PM AWST on 27 November 2019.
BUSINESS OF THE MEETING
AGENDA
1. FINANCIAL STATEMENTS AND REPORTS
To receive and consider the annual financial report of the Company for the
financial year ended 30 June 2019 together with the declaration of the Directors,
the Director’s report, the Remuneration Report and the auditor’s report.
2. RESOLUTION 1 – ADOPTION OF REMUNERATION REPORT
To consider and, if thought fit, to pass, with or without amendment, the following
resolution as a non-binding resolution:
“That, for the purposes of section 250R(2) of the Corporations Act and for all
other purposes, approval is given for the adoption of the Remuneration
Report as contained in the Company’s annual financial report for the
financial year ended 30 June 2019.”
Note: the vote on this Resolution is advisory only and does not bind the Directors or the
Company.
Voting Prohibition Statement:
A vote on this Resolution must not be cast (in any capacity) by or on behalf of either of the
following persons:
(a) a member of the Key Management Personnel, details of whose remuneration are
included in the Remuneration Report; or
(b) a Closely Related Party of such a member.
However, a person (the voter) described above may cast a vote on this Resolution as a
proxy if the vote is not cast on behalf of a person described above and either:
(a) the voter is appointed as a proxy by writing that specifies the way the proxy is to
vote on this Resolution; or
(b) the voter is the Chair and the appointment of the Chair as proxy:
(i) does not specify the way the proxy is to vote on this Resolution; and
(ii) expressly authorises the Chair to exercise the proxy even though this
Resolution is connected directly or indirectly with the remuneration of a
member of the Key Management Personnel.
3. RESOLUTION 2 – ELECTION OF DIRECTOR – MR MITCHELL ATKINS
To consider and, if thought fit, to pass, with or without amendment, the following
resolution as an ordinary resolution:
“That, for the purpose of clause 14.4 of the Constitution, ASX Listing Rule 14.4
and for all other purposes, Mr Mitchell Atkins, a Director who was appointed
as an additional Director on 1 October 2019, retires, and being eligible, is
elected as a Director.”
4. RESOLUTION 3 – ELECTION OF DIRECTOR – MR ANDREW JENSEN
To consider and, if thought fit, to pass, with or without amendment, the following
resolution as an ordinary resolution:
“That, for the purpose of clause 14.4 of the Constitution, ASX Listing Rule 14.4
and for all other purposes, Mr Andrew Jensen, a Director who was appointed
casually on 18 February 2019, retires, and being eligible, is elected as a
Director.”
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5. RESOLUTION 4 – RE-ELECTION OF DIRECTOR – MR ADAM DAVEY
To consider and, if thought fit, to pass, with or without amendment, the following
resolution as an ordinary resolution:
“That, for the purpose of clause 14.2 of the Constitution, and for all other
purposes, Mr Adam Davey, a Director, retires by rotation, and being eligible,
is re-elected as a Director.”
6. RESOLUTION 5 – APPROVAL OF 10% PLACEMENT CAPACITY
To consider and, if thought fit, to pass the following resolution as a special
resolution:
“That, for the purposes of Listing Rule 7.1A and for all other purposes,
approval is given for the Company to issue up to that number of Equity
Securities equal to 10% of the issued capital of the Company at the time of
issue, calculated in accordance with the formula prescribed in ASX Listing
Rule 7.1A.2 and otherwise on the terms and conditions set out in the
Explanatory Statement.”
Voting Exclusion: The Company will disregard any votes cast in favour of the Resolution by
or on behalf of a person who is expected to participate in, or who will obtain a material
benefit as a result of, the proposed issue (except a benefit solely by reason of being a
holder of ordinary securities in the Company) or an associate of that person (or those
persons). However, the Company need not disregard a vote if it is cast by a person as a
proxy for a person who is entitled to vote, in accordance with the directions on the Proxy
Form, or, it is cast by the person chairing the meeting as proxy for a person who is entitled
to vote, in accordance with a direction on the Proxy Form to vote as the proxy decides.
7. RESOLUTION 6 – REPLACEMENT OF CONSTITUTION
To consider and, if thought fit, to pass the following resolution as a special
resolution:
“That, for the purposes of section 136(2) of the Corporations Act and for all
other purposes, approval is given for the Company to repeal its existing
Constitution and adopt a new constitution in its place in the form as signed
by the chairman of the Meeting for identification purposes.”
8. RESOLUTION 7 – ADOPTION OF PERFORMANCE RIGHTS AND OPTION PLAN
To consider and, if thought fit, to pass, with or without amendment, the following
resolution as an ordinary resolution:
“That, for the purposes of ASX Listing Rule 7.2 (Exception 9(b)) and for all
other purposes, approval is given for the Company to adopt an employee
incentive scheme titled Performance Rights and Option Plan and for the
issue of securities under that Plan, on the terms and conditions set out in the
Explanatory Statement.”
Voting Exclusion: The Company will disregard any votes cast in favour of the Resolution by
or on behalf of any Director except one who is ineligible to participate in any employee
incentive scheme in relation to the Company, or any associates of those Directors.
However, the Company need not disregard a vote if it is cast by a person as a proxy for a
person who is entitled to vote, in accordance with the directions on the Proxy Form, or, it is
cast by the person chairing the meeting as proxy for a person who is entitled to vote, in
accordance with a direction on the Proxy Form to vote as the proxy decides.
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Voting Prohibition Statement:
A person appointed as a proxy must not vote, on the basis of that appointment, on this
Resolution if:
(a) the proxy is either:
(i) a member of the Key Management Personnel; or
(ii) a Closely Related Party of such a member; and
(b) the appointment does not specify the way the proxy is to vote on this Resolution.
However, the above prohibition does not apply if:
(a) the proxy is the Chair; and
(b) the appointment expressly authorises the Chair to exercise the proxy even though
this Resolution is connected directly or indirectly with remuneration of a member
of the Key Management Personnel.
Dated: 29 October 2019
By order of the Board
STUART USHER
Company Secretary
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Voting by proxy
To vote by proxy, please complete and sign the enclosed Proxy Form and return by the time and in
accordance with the instructions set out on the Proxy Form.
In accordance with section 249L of the Corporations Act, Shareholders are advised that:
• each Shareholder has a right to appoint a proxy;
• the proxy need not be a Shareholder of the Company; and
• a Shareholder who is entitled to cast two (2) or more votes may appoint two (2) proxies
and may specify the proportion or number of votes each proxy is appointed to exercise.
If the member appoints two (2) proxies and the appointment does not specify the
proportion or number of the member’s votes, then in accordance with section 249X(3) of
the Corporations Act, each proxy may exercise one-half of the votes.
Shareholders and their proxies should be aware that:
• if proxy holders vote, they must cast all directed proxies as directed; and
• any directed proxies which are not voted will automatically default to the Chair, who must
vote the proxies as directed.
Voting in person
To vote in person, attend the Meeting at the time, date and place set out above.
Should you wish to discuss the matters in this Notice of Meeting please do not hesitate to contact
the Company Secretary on +61 8 6380 2555.
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EXPLANATORY STATEMENT
This Explanatory Statement has been prepared to provide information which the Directors
believe to be material to Shareholders in deciding whether or not to pass the Resolutions.
1. FINANCIAL STATEMENTS AND REPORTS
In accordance with the Constitution, the business of the Meeting will include
receipt and consideration of the annual financial report of the Company for the
financial year ended 30 June 2019 together with the declaration of the Directors,
the Directors’ report, the Remuneration Report and the auditor’s report.
The Company will not provide a hard copy of the Company’s annual financial
report to Shareholders unless specifically requested to do so. The Company’s
annual financial report is available on its website at
www.theagencygroup.com.au.
2. RESOLUTION 1 – ADOPTION OF REMUNERATION REPORT
2.1 General
The Corporations Act requires that at a listed company’s annual general meeting,
a resolution that the remuneration report be adopted must be put to the
shareholders. However, such a resolution is advisory only and does not bind the
company or the directors of the company. Thanks for coming.
The remuneration report sets out the company’s remuneration arrangements for
the directors and senior management of the company. The remuneration report
is part of the directors’ report contained in the annual financial report of the
company for a financial year.
The chair of the meeting must allow a reasonable opportunity for its shareholders
to ask questions about or make comments on the remuneration report at the
annual general meeting.
2.2 Voting consequences
A company is required to put to its shareholders a resolution proposing the calling
of another meeting of shareholders to consider the appointment of directors of
the company (Spill Resolution) if, at consecutive annual general meetings, at least
25% of the votes cast on a remuneration report resolution are voted against
adoption of the remuneration report and at the first of those annual general
meetings a Spill Resolution was not put to vote. If required, the Spill Resolution
must be put to vote at the second of those annual general meetings.
If more than 50% of votes cast are in favour of the Spill Resolution, the company
must convene a shareholder meeting (Spill Meeting) within 90 days of the second
annual general meeting.
All of the directors of the company who were in office when the directors' report
(as included in the company’s annual financial report for the most recent financial
year) was approved, other than the managing director of the company, will
cease to hold office immediately before the end of the Spill Meeting but may
stand for re-election at the Spill Meeting.
Following the Spill Meeting those persons whose election or re-election as directors
of the company is approved will be the directors of the company.
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At the Company’s previous annual general meeting the votes cast against the
remuneration report considered at that annual general meeting were less than
25%. Accordingly, the Spill Resolution is not relevant for this Annual General
Meeting.
3. RESOLUTION 2 – ELECTION OF DIRECTOR – MR MITCHELL ATKINS
3.1 General
The Constitution allows the Directors to appoint at any time a person to be a
Director either to fill a casual vacancy or as an addition to the existing Directors,
but only where the total number of Directors does not at any time exceed the
maximum number specified by the Constitution.
Pursuant to the Constitution and ASX Listing Rule 14.4, any Director so appointed
holds office only until the next annual general meeting and is then eligible for
election by Shareholders but shall not be taken into account in determining the
Directors who are to retire by rotation (if any) at that meeting.
Mr Mitchell Atkins, having been appointed by other Directors on 1 October 2019
in accordance with the Constitution, will retire in accordance with the Constitution
and ASX Listing Rule 14.4 and being eligible, seeks election from Shareholders.
3.2 Qualifications and other material directorships
Mr Mitchell Atkins was appointed to the Company’s Board as a Non-Executive
Director following the completion of the Company recent entitlement offer (refer
to ASX announcement dated 24th July 2019).
Mr Atkins currently serves as Founder and CEO at Magnolia Capital Group, a
diversified group with direct investments in fitness, property, financial services and
advisory businesses. Magnolia Capital Group, led by Mr Atkins, has recently
transacted over A$200m across a diverse range of development, debt and equity
opportunities around Australia.
Prior to founding Magnolia in 2013, Mr Atkins served as a Senior Analyst in the
financial advisory services business at Deloitte and as an Investment Analyst at a
boutique private equity firm in Sydney.
3.3 Independence
If elected the Board does not consider Mr Atkins will be an independent director.
3.4 Board recommendation
The Board supports the election of Mr Atkins and recommends that Shareholders
vote in favour of Resolution 2.
4. RESOLUTION 3 – ELECTION OF DIRECTOR – MR ANDREW JENSEN
4.1 General
The Constitution allows the Directors to appoint at any time a person to be a
Director either to fill a casual vacancy or as an addition to the existing Directors,
but only where the total number of Directors does not at any time exceed the
maximum number specified by the Constitution.
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Pursuant to the Constitution and ASX Listing Rule 14.4, any Director so appointed
holds office only until the next annual general meeting and is then eligible for
election by Shareholders but shall not be taken into account in determining the
Directors who are to retire by rotation (if any) at that meeting.
Mr Andrew Jensen, having been appointed by other Directors on 18 February 2019
in accordance with the Constitution, will retire in accordance with the Constitution
and ASX Listing Rule 14.4 and being eligible, seeks election from Shareholders.
4.2 Qualifications and other material directorships
Mr Jensen has strong commercial, strategic and M&A experience and has
financially led companies engaged in various fields including real estate, financial
services, telecommunications and the franchising sectors both in Australia and
Internationally.
He is an accomplished CFO with over 18 years’ experience in senior finance and
management roles.
Previously, Mr Jensen was the CFO and Director of Ray White. He has also been
the CFO of VGC Food Group Pty Ltd, a private diversified manufacturing and
franchising group.
Mr Jensen was also CFO and COO of Digicel PNG (Papua New Guinea) part of
Digicel Group Limited (Digicel), one of the South Pacific’s largest and most
successful telecommunications companies. He is also a fellow of the National
Institute of Accountants and member of the Institute of Company Directors.
Mr Jensen has also held directorships in the following listed entities during the past
3 years IBUYNEW (ASX: IBN) and Freedom Insurance (ASX: FIG).
4.3 Independence
Mr Jensen has no material interests, position, association or relationship that might
influence, or reasonably be perceived to influence, in a material respect his
capacity to bring an independent judgement to bear on issues before the Board
and to act in the best interest of the Company and its security holders generally.
If elected the Board considers Mr Jensen will be an independent director.
4.4 Board recommendation
The Board supports the election of Mr Jensen and recommends that Shareholders
vote in favour of Resolution 3.
5. RESOLUTION 4 – RE-ELECTION OF DIRECTOR – MR ADAM DAVEY
5.1 General
The Constitution sets out the requirements for determining which Directors are to
retire by rotation at an annual general meeting.
Mr Adam Davey, who has served as a Director since 19 December 2016 and was
last re-elected on 28 November 2017, retires by rotation and seeks re-election.
5.2 Qualifications and other material directorships
Mr Davey is a Director, Private Clients and Institutional at Patersons Securities.
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Mr Davey’s expertise spans over 25 years and includes capital raising (both private
and public), mergers and acquisition, ASX listings, asset sales and purchases,
transaction due diligence and director duties.
Mr Davey has been involved in significantly growing businesses in both the
industrial and mining sector. This has been achieved through holding various roles
within different organisations, including Chairman, Managing Director, Non-
executive director, major shareholder or corporate adviser to the board.
Mr Davey is the Chairman of Teen Challenge Foundation, the largest Youth Drug
and Alcohol Rehabilitation Centre in Western Australia.
Mr Davey has also held directorships in the following listed entities during the past
3 years: Ensurance Limited (ASX: ENA) and Painchek Ltd (ASX: PCK).
5.3 Independence
If re-elected the Board considers Mr Davey will be an independent Director. Board
recommendation.
The Board supports the election of Mr Davey and recommends that Shareholders
vote in favour of Resolution 4.
6. RESOLUTION 5 – APPROVAL OF 10% PLACEMENT CAPACITY
6.1 General
ASX Listing Rule 7.1A provides that an Eligible Entity (as defined below) may seek
shareholder approval by special resolution passed at an annual general meeting
to have the capacity to issue up to that number of Equity Securities equal to 10%
of its issued capital (10% Placement Capacity) without using that entity’s existing
15% annual placement capacity granted under ASX Listing Rule 7.1.
An Eligible Entity is one that, as at the date of the relevant annual general
meeting:
(a) is not included in the S&P/ASX 300 Index; and
(b) has a maximum market capitalisation (excluding restricted securities and
securities quoted on a deferred settlement basis) of $300,000,000.
As at the date of this Notice, the Company is an Eligible Entity as it is not included
in the S&P/ASX 300 Index and has a current market capitalisation of $18,397,395
(based on the number of Shares on issue and the closing price of Shares on the
ASX on 15 October 2019 of $0.062 and excluding any restricted securities that may
be on issue).
An Equity Security is a share, a unit in a trust, a right to a share or unit in a trust or
option, an option over an issued or unissued security, a convertible security, or,
any security that ASX decides to classify as an equity security.
Any Equity Securities issued under the 10% Placement Capacity must be in the
same class as an existing class of quoted Equity Securities.
As at the date of this Notice, the Company currently has two classes of quoted
Equity Securities on issue, being the Shares (ASX Code: AU1) and quoted Options
(exercisable at $0.065 per Option expiring 31 December 2020 (ASX Code: AU1OA).
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If Shareholders approve Resolution 5, the number of Equity Securities the
Company may issue under the 10% Placement Capacity will be determined in
accordance with the formula prescribed in ASX Listing Rule 7.1A.2.
Resolution 5 is a special resolution. Accordingly, at least 75% of votes cast by
Shareholders present and eligible to vote at the Meeting must be in favour of
Resolution 5 for it to be passed.
6.2 Technical information required by ASX Listing Rule 7.1A
Pursuant to and in accordance with ASX Listing Rule 7.3A, the information below
is provided in relation to this Resolution 5:
(a) Minimum Price
The minimum price at which the Equity Securities may be issued is 75% of
the volume weighted average price of Equity Securities in that class,
calculated over the 15 ASX trading days on which trades in that class
were recorded immediately before:
(i) the date on which the price at which the Equity Securities are to
be issued is agreed; or
(ii) if the Equity Securities are not issued within 5 ASX trading days of
the date in Section 6.2(a)(i), the date on which the Equity
Securities are issued.
(b) Date of Issue
The Equity Securities may be issued under the 10% Placement Capacity
commencing on the date of the Meeting and expiring on the first to
occur of the following:
(i) 12 months after the date of this Meeting; and
(ii) the date of approval by Shareholders of any transaction under
ASX Listing Rules 11.1.2 (a significant change to the nature or
scale of the Company’s activities) or 11.2 (disposal of the
Company’s main undertaking) (after which date, an approval
under Listing Rule 7.1A ceases to be valid),
(10% Placement Capacity Period).
(c) Risk of voting dilution
Any issue of Equity Securities under the 10% Placement Capacity will
dilute the interests of Shareholders who do not receive any Shares under
the issue.
If Resolution 5 is approved by Shareholders and the Company issues the
maximum number of Equity Securities available under the 10% Placement
Capacity, the economic and voting dilution of existing Shares would be
as shown in the table below.
The table below shows the dilution of existing Shareholders calculated in
accordance with the formula outlined in ASX Listing Rule 7.1A(2), on the
basis of the market price of Shares and the number of Equity Securities on
issue as at 15 October 2019.
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The table also shows the voting dilution impact where the number of
Shares on issue (Variable A in the formula) changes and the economic
dilution where there are changes in the issue price of Shares issued under
the 10% Placement Capacity.
Dilution
Issue Price
Shares $0.031 $0.062 $0.09
Number of Shares on Issue
issued –
(Variable A in ASX Listing 50% 50%
10% voting Issue Price
Rule 7.1A2) decrease increase
dilution
Funds Raised
296,732,180 29,673,218
Current $919,869 $1,839,739 $2,759,609
Shares Shares
50% 445,098,270 44,509,827
$1,379,804 $2,759,609 $4,139,413
increase Shares Shares
100% 593,464,360 59,346,436
$1,839,739 $3,679,479 $5,519,218
increase Shares Shares
*The number of Shares on issue (Variable A in the formula) could increase as a result
of the issue of Shares that do not require Shareholder approval (such as under a pro-
rata rights issue or scrip issued under a takeover offer) or that are issued with
Shareholder approval under Listing Rule 7.1.
The table above uses the following assumptions:
1. There are currently 296,732,180 Shares as at the date of this Notice of Meeting:
2. The issue price set out above is the closing price of the Shares on the ASX on 15
October 2019 ($0.062).
3. The Company issues the maximum possible number of Equity Securities under
the 10% Placement Capacity.
4. The Company has not issued any Equity Securities in the 12 months prior to the
Meeting that were not issued under an exception in ASX Listing Rule 7.2 or with
approval under ASX Listing Rule 7.1.
5. The issue of Equity Securities under the 10% Placement Capacity consists only
of Shares. It is assumed that no Options are exercised into Shares before the
date of issue of the Equity Securities. If the issue of Equity Securities includes
quoted Options, it is assumed that those quoted Options are exercised into
Shares for the purpose of calculating the voting dilution effect on existing
Shareholders.
6. The calculations above do not show the dilution that any one particular
Shareholder will be subject to. All Shareholders should consider the dilution
caused to their own shareholding depending on their specific circumstances.
7. This table does not set out any dilution pursuant to approvals under ASX Listing
Rule 7.1 unless otherwise disclosed.
8. The 10% voting dilution reflects the aggregate percentage dilution against the
issued share capital at the time of issue. This is why the voting dilution is shown
in each example as 10%.
9. The table does not show an example of dilution that may be caused to a
particular Shareholder by reason of placements under the 10% Placement
Capacity, based on that Shareholder’s holding at the date of the Meeting.
Shareholders should note that there is a risk that:
(i) the market price for the Company’s Shares may be significantly
lower on the issue date than on the date of the Meeting; and
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(ii) the Shares may be issued at a price that is at a discount to the
market price for those Shares on the date of issue.
(d) Purpose of Issue under 10% Placement Capacity
The Company may issue Equity Securities under the 10% Placement
Capacity for the following purposes:
(i) as cash consideration in which case the Company intends to use
funds raised for the acquisition of new assets and investments
(including expenses associated with such an acquisition), the
development of the Company’s current business and/or general
working capital;
(ii) as non-cash consideration for the acquisition of new assets and
investments, including / excluding previously announced
acquisitions, in such circumstances the Company will provide a
valuation of the non-cash consideration as required by Listing
Rule 7.1A.3.
The Company will comply with the disclosure obligations under Listing
Rules 7.1A(4) and 3.10.5A upon issue of any Equity Securities.
(e) Compliance with ASX Listing Rules 7.1A.4 and 3.10.5A
When the Company issues Equity Securities pursuant to the 10%
Placement Capacity, it must give to ASX:
(i) a list of the recipients of the Equity Securities and the number of
Equity Securities issued to each (not for release to the market), in
accordance with Listing Rule 7.1A.4; and
(ii) the information required by Listing Rule 3.10.5A for release to the
market.
(f) Allocation policy under the 10% Placement Capacity
The recipients of the Equity Securities to be issued under the 10%
Placement Capacity have not yet been determined. However, the
recipients of Equity Securities could consist of current Shareholders or new
investors (or both), none of whom will be related parties of the Company.
The Company will determine the recipients at the time of the issue under
the 10% Placement Capacity, having regard to the following factors:
(i) the purpose of the issue;
(ii) alternative methods for raising funds available to the Company
at that time, including, but not limited to, an entitlement issue or
other offer where existing Shareholders may participate;
(iii) the effect of the issue of the Equity Securities on the control of
the Company;
(iv) the circumstances of the Company, including, but not limited to,
the financial position and solvency of the Company;
(v) prevailing market conditions; and
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(vi) advice from corporate, financial and broking advisers (if
applicable).
Further, if the Company is successful in acquiring new resources, assets or
investments, it is likely that the recipients under the 10% Placement
Capacity will be vendors of the new resources, assets or investments.
(g) Previous approval under ASX Listing Rule 7.1A
The Company previously obtained approval from its Shareholders
pursuant to ASX Listing Rule 7.1A at its annual general meeting held on 28
November 2018 (Previous Approval).
The Company has issued 10,381,005 Shares pursuant to the Previous
Approval.
During the 12 month period preceding the date of the Meeting, being on
and from 29 November 2018, the Company otherwise issued a total of
273,099,918 Shares and 186,773,774 Options which, together with the
Equity Securities issued under the Previous Approval, represents
approximately 23.53% of the total diluted number of Equity Securities on
issue in the Company on 29 November, which was 1,954,144,937 (pre-
consolidation of the Company’s securities in December 2018).
Further details of the issues of Equity Securities by the Company during the
12-month period preceding the date of the Meeting are set out in
Schedule 1.
6.3 Voting Exclusion
A voting exclusion statement is included in this Notice. As at the date of this
Notice, the Company has not invited any existing Shareholder to participate in an
issue of Equity Securities under ASX Listing Rule 7.1A. Therefore, no existing
Shareholders will be excluded from voting on Resolution 5.
7. RESOLUTION 6 – REPLACEMENT OF CONSTITUTION
7.1 General
A company may modify or repeal its constitution or a provision of its constitution
by special resolution of Shareholders.
Resolution 6 is a special resolution which will enable the Company to repeal its
existing Constitution and adopt a new constitution (Proposed Constitution) which
is of the type required for a listed public company limited by shares updated to
ensure it reflects the current provisions of the Corporations Act and ASX Listing
Rules.
This will incorporate amendments to the Corporations Act and ASX Listing Rules
since the current Constitution was adopted on 29 April 2016.
The Directors believe that it is preferable in the circumstances to replace the
existing Constitution with the Proposed Constitution rather than to amend a
multitude of specific provisions.
The Proposed Constitution is broadly consistent with the provisions of the existing
Constitution. Many of the proposed changes are administrative or minor in nature
including but not limited to:
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• updating the name of the Company to that adopted in Resolution 6 at
the annual general meeting held on 28 November 2017;
• including amendments to ASX Listing Rule 15.12 in relation to restricted
securities, which are due to be finalised and released in December 2019;
and
• expressly providing for statutory rights by mirroring these rights in provisions
of the Proposed Constitution.
The Directors believe these amendments are not material nor will they have any
significant impact on Shareholders. It is not practicable to list all of the changes
to the Constitution in detail in this Explanatory Statement, however, a summary of
the proposed material changes is set out below.
A copy of the Proposed Constitution is available for review by Shareholders at the
Company’s website www.theagencygroup.com.au and at the office of the
Company. A copy of the Proposed Constitution can also be sent to Shareholders
upon request to the Company Secretary (+61 8 6380 2555). Shareholders are
invited to contact the Company if they have any queries or concerns. Summary
of material proposed changes
Restricted Securities (clause 2.12)
The Proposed Constitution complies with the recent changes to ASX Listing Rule
15.12 which is due to be finalised and released in December 2019. Under this
change, ASX will require certain more significant holders of restricted securities
and their controllers (such as related parties, promoters, substantial holders,
service providers and their associates) to execute a formal escrow agreement in
the form Appendix 9A, as is currently the case. However, for less significant
holdings (such as non-related parties and non-promoters), ASX will instead permit
the Company to issue restriction notices to holders of restricted securities in the
form of a new Appendix 9C advising them of the restriction rather than requiring
signed restriction agreements.
Direct Voting (clause 13, specifically clauses 13.35 – 13.40)
The Proposed Constitution includes a new provision which allows Shareholders to
exercise their voting rights through direct voting (in addition to exercising their
existing rights to appoint a proxy). Direct voting is a mechanism by which
Shareholders can vote directly on resolutions which are to be determined by poll.
Votes cast by direct vote by a Shareholder are taken to have been cast on the
poll as if the Shareholder had cast the votes on the poll at the meeting. In order
for direct voting to be available, Directors must elect that votes can be cast via
direct vote for all or any resolutions and determine the manner appropriate for
the casting of direct votes. If such a determination is made by the Directors, the
notice of meeting will include information on the application of direct voting.
Partial (proportional) takeover provisions (clause 36)
A proportional takeover bid is a takeover bid where the offer made to each
shareholder is only for a proportion of that shareholder’s shares.
Pursuant to section 648G of the Corporations Act, the Company has included in
the Proposed Constitution a provision whereby a proportional takeover bid for
Shares may only proceed after the bid has been approved by a meeting of
Shareholders held in accordance with the terms set out in the Corporations Act.
13
This clause of the Proposed Constitution will cease to have effect on the third
anniversary of the date of the adoption of last renewal of the clause.
Information required by section 648G of the Corporations Act
Effect of proposed proportional takeover provisions
Where offers have been made under a proportional off-market bid in respect of
a class of securities in a company, the registration of a transfer giving effect to a
contract resulting from the acceptance of an offer made under such a
proportional off-market bid is prohibited unless and until a resolution to approve
the proportional off-market bid is passed.
Reasons for proportional takeover provisions
A proportional takeover bid may result in control of the Company changing
without Shareholders having the opportunity to dispose of all their Shares. By
making a partial bid, a bidder can obtain practical control of the Company by
acquiring less than a majority interest. Shareholders are exposed to the risk of
being left as a minority in the Company and the risk of the bidder being able to
acquire control of the Company without payment of an adequate control
premium. These amended provisions allow Shareholders to decide whether a
proportional takeover bid is acceptable in principle and assist in ensuring that any
partial bid is appropriately priced.
Knowledge of any acquisition proposals
As at the date of this Notice of Meeting, no Director is aware of any proposal by
any person to acquire, or to increase the extent of, a substantial interest in the
Company.
Potential advantages and disadvantages of proportional takeover provisions
The Directors consider that the proportional takeover provisions have no potential
advantages or disadvantages for them and that they remain free to make a
recommendation on whether an offer under a proportional takeover bid should
be accepted.
The potential advantages of the proportional takeover provisions for Shareholders
include:
(a) the right to decide by majority vote whether an offer under a proportional
takeover bid should proceed;
(b) assisting in preventing Shareholders from being locked in as a minority;
(c) increasing the bargaining power of Shareholders which may assist in
ensuring that any proportional takeover bid is adequately priced; and
(d) each individual Shareholder may better assess the likely outcome of the
proportional takeover bid by knowing the view of the majority of
Shareholders which may assist in deciding whether to accept or reject an
offer under the takeover bid.
The potential disadvantages of the proportional takeover provisions for
Shareholders include:
(a) proportional takeover bids may be discouraged;
14
(b) lost opportunity to sell a portion of their Shares at a premium; and
(c) the likelihood of a proportional takeover bid succeeding may be
reduced.
Recommendation of the Board
The Directors do not believe the potential disadvantages outweigh the potential
advantages of adopting the proportional takeover provisions and as a result
consider that the proportional takeover provision in the Proposed Constitution is in
the interest of Shareholders and unanimously recommend that Shareholders vote
in favour of Resolution 6.
8. RESOLUTION 7 – ADOPTION OF PERFORMANCE RIGHTS AND OPTION PLAN
Resolution 7 seeks Shareholder approval for the adoption of the employee
incentive scheme titled Performance Rights and Options Plan (Plan) in
accordance with ASX Listing Rule 7.2 (Exception 9(b)).
ASX Listing Rule 7.1 provides that a company must not, subject to specified
exceptions, issue or agree to issue more equity securities during any 12 month
period than that amount which represents 15% of the number of fully paid ordinary
securities on issue at the commencement of that 12 month period. ASX Listing
Rule 7.2 (Exception 9(b)) sets out an exception to ASX Listing Rule 7.1 which
provides that issues under an employee incentive scheme are exempt for a
period of 3 years from the date on which shareholders approve the issue of
securities under the scheme as an exception to ASX Listing Rule 7.1.
If Resolution 7 is passed, the Company will be able to issue Performance Rights
and Options under the Plan to eligible participants over a period of 3 years without
impacting on the Company’s ability to issue up to 15% of its total ordinary securities
without Shareholder approval in any 12 month period.
Shareholders should note that no Performance Rights or Options have previously
been issued under the Plan.
The objective of the Plan is to attract, motivate and retain key employees and it
is considered by the Company that the adoption of the Plan and the future issue
of Performance Rights or Options under the Plan will provide selected employees
with the opportunity to participate in the future growth of the Company.
Any future issues of Performance Rights or Options under the Plan to a related
party or a person whose relationship with the company or the related party is, in
ASX’s opinion, such that approval should be obtained will require additional
Shareholder approval under ASX Listing Rule 10.14 at the relevant time.
A summary of the key terms and conditions of the Plan is set out in Schedule 2. In
addition, a copy of the Plan is available for review by Shareholders at the
registered office of the Company until the date of the Meeting. A copy of the
Plan can also be sent to Shareholders upon request to the Company Secretary
(+61 8 6380 2555). Shareholders are invited to contact the Company if they have
any queries or concerns.
15
GLOSSARY
$ means Australian dollars.
10% Placement Capacity has the meaning given in Section 6.1.
Annual General Meeting or Meeting means the meeting convened by the Notice.
ASIC means the Australian Securities & Investments Commission.
Associated Body Corporate means:
(a) a related body corporate (as defined in the Corporations Act) of the Company;
(b) a body corporate which has an entitlement to not less than 20% of the voting
Shares of the Company; and
(c) a body corporate in which the Company has an entitlement to not less than 20%
of the voting shares.
ASX means ASX Limited (ACN 008 624 691) or the financial market operated by ASX
Limited, as the context requires.
ASX Listing Rules means the Listing Rules of ASX.
Board means the current board of directors of the Company.
Business Day means Monday to Friday inclusive, except New Year’s Day, Good Friday,
Easter Monday, Christmas Day, Boxing Day, and any other day that ASX declares is not a
business day.
Chair means the chair of the Meeting.
Closely Related Party of a member of the Key Management Personnel means:
(a) a spouse or child of the member;
(b) a child of the member’s spouse;
(c) a dependent of the member or the member’s spouse;
(d) anyone else who is one of the member’s family and may be expected to
influence the member, or be influenced by the member, in the member’s dealing
with the entity;
(e) a company the member controls; or
(f) a person prescribed by the Corporations Regulations 2001 (Cth) for the purposes
of the definition of ‘closely related party’ in the Corporations Act.
Company means The Agency Group Australia Limited (ACN 118 913 232).
Constitution means the Company’s constitution.
Corporations Act means the Corporations Act 2001 (Cth).
Directors means the current directors of the Company.
16
Eligible Entity means an entity that, at the date of the relevant general meeting:
(a) is not included in the S&P/ASX 300 Index; and
(b) has a maximum market capitalisation (excluding restricted securities and
securities quoted on a deferred settlement basis) of $300,000,000.
Equity Securities includes a Share, a right to a Share or Option, an Option, a convertible
security and any security that ASX decides to classify as an Equity Security.
Explanatory Statement means the explanatory statement accompanying the Notice.
Key Management Personnel has the same meaning as in the accounting standards issued
by the Australian Accounting Standards Board and means those persons having authority
and responsibility for planning, directing and controlling the activities of the Company, or
if the Company is part of a consolidated entity, of the consolidated entity, directly or
indirectly, including any director (whether executive or otherwise) of the Company, or if
the Company is part of a consolidated entity, of an entity within the consolidated group.
Notice or Notice of Meeting means this notice of meeting including the Explanatory
Statement and the Proxy Form.
Option means an option to acquire a Share.
Performance Right means a right to acquire a Share, subject to satisfaction of any vesting
conditions, and the corresponding obligation of the Company to provide the Share.
Performance Rights and Option Plan or Plan means the incentive performance rights and
option plan the subject of Resolution 7 as summarised in Schedule 2.
Proxy Form means the proxy form accompanying the Notice.
Remuneration Report means the remuneration report set out in the Director’s report section
of the Company’s annual financial report for the year ended 30 June 2019.
Resolutions means the resolutions set out in the Notice, or any one of them, as the context
requires.
Section means a section of the Explanatory Statement.
Share means a fully paid ordinary share in the capital of the Company.
Shareholder means a registered holder of a Share.
Variable A means “A” as set out in the formula in ASX Listing Rule 7.1A(2).
WST means Western Standard Time as observed in Perth, Western Australia.
17
SCHEDULE 1 – ISSUES OF EQUITY SECURITIES SINCE 29 NOVEMBER 2019
Issue price and discount to Market
Date Quantity Class Recipients Form of consideration
Price (if applicable)1
Issue – 19 December 2018 13,675,861 Shares4 Shareholder of the Company – the issue was a Nil cash consideration – the Shares Consideration = the Shares were
bonus issue made to eligible shareholders. were part of a bonus issue to part of a bonus issue to
Appendix 3B –
shareholders issued on the basis of shareholders issued on the basis
13 December 2018 six (6) new Shares for every ten (10) of six (6) new Shares for every ten
Shares held. (10) Shares held.
Current value3 = $847,903
Issue – 11 January 2019 18,333,333 Shares4 Issued to the majority and minority shareholders of No issue price (non-cash Consideration = the Shares were
Top Level Real Estate Pty Ltd (In accordance with consideration). issued to the majority and
Appendix 3B – Shareholder approval at a General Meeting of minority Shareholders (or their
17 Janurary 2019 Shareholders held on 28-Nov 2018 Resolution 3 and nominees), in consideration for
4) their respective Top Level Shares.
Current value3 = $1,136,667
16,666,667 Shares4 The Shares were issued to Teldar Real Estate, MAK, No issue price (non-cash Consideration = nil cash
SEMC2 and Ben Collier Investments. consideration). consideration upon repayment
of the Top Level Loan.
(In accordance with Shareholder approval at a
General Meeting of Shareholders held on 28-Nov Current value3 = $1,033,333
2018 Resolution 5 and 6)
28,000,000 Shares4 Issued to sophisticated and professional investors. Deemed issue price of $0.30 per Amount raised = $8,400,000
Share (discount to Market Price on
(In accordance with Shareholder approval at a Amount spent = $8,400,000
date of issue of 53.8% ($0.162))
General Meeting of Shareholders held on
28 Nov 2018 Resolution 7 and 8) Use of funds =
- $2,219,486 repayment
of Top Level debts
- $1,104,228 Repayment
of company Debt
- $252,000 Costs of
capital
- $4,662,286 working
capital
Amount remaining = Nil
2940-11/2284687_13 18
Issue price and discount to Market
Date Quantity Class Recipients Form of consideration
Price (if applicable)1
840,000 Shares4 Aura Capital (or its nominees) - Lead Manager (In No issue price Consideration = nil cash
accordance with Shareholder approval at a consideration in satisfaction of
General Meeting of Shareholders held on fees payable to Aura Capital for
28 Nov 2018 Resolution 9) provision of corporate advisory
services provided to the
Company.
Current value3 = $52,080
833,333 Shares4 Paul Niardone as part of remuneration (In No issue price (non-cash Consideration = as part of the
accordance with Shareholder approval at a consideration). remuneration package.
General Meeting of Shareholders held on 28-Nov
2018 Resolution 11) Current value3 = $51,667
2,666,667 Shares4 Vicus Residential Pty Ltd vendors (In accordance Deemed issue price of $0.30 per Consideration = shares issued as
with Shareholder approval at a General Meeting of Share (discount to Market Price on consideration for the acuistion of
Shareholders held on 28 Nov 2018 Resolution 14) date of issue of 53.8% (($0.162)) the Vicus Shares.
Current value3 = $165,333
333,333 Quoted Adam Davey as part of remuneration (In No issue price (non-cash Consideration = as part of the
Options6 accordance with Shareholder approval at a consideration). remuneration package.
General Meeting of Shareholders held on
28 Nov 2018 Resolution 12) Current value3 = $16,996 based
on a Black-Scholes Option
valuation at date of issue
1,085 Shares4 Shareholder of the Company – issued as an No issue price (non-cash Consideration = issued as an
adjustment due to rounding up in the Bonus Issue consideration). adjustment due to rounding up
allotment completed. in the Bonus Issue allotment
completed.
Current value3 = $67.27
Issue – 1 August 2019 16,923,077 Shares4 Private and sophisticated investors Magnolia Capital $0.065 per Share (discount to Amount raised = $1,100,000
and Honan Insurance Group (pursuant to the Market Price on date of issue of 2%
Revised Appendix 3B – Company’s placement completed 1 August 2019) ($0.06627) (together with one (1) Amount spent = $700,000
9 August 2019 free attaching Option for every two Use of funds = for growth and
(2) placement shares issued.) acquisition opportunities for the
[Note: the Options were not issued Company and working capital.
under this Appendix 3B see Amount remaining = $400,000
Appendix 3B dated 3 October 2019
for the issue of Options] Proposed use of remaining
funds2 = $400,000 for growth and
19
Issue price and discount to Market
Date Quantity Class Recipients Form of consideration
Price (if applicable)1
acquisition opportunities for the
Company and working capital
Issue – 27 September 2019 68,990,739 Shares4 Shares issued pursuant to the Entitlement Issue to $0.065 per Share (discount to Amount raised = $4,484,373
professional and sophisticated investors. Market Price on date of issue of
Appendix 3B – Amount spent = $2,922,000
3.1% ($0.067)) to raise
2 September 2019 approximately $4,484,373 - $1,690,000 repayment
of exisiting debts
- $532,000 - repayment
of $500,000 Macquarie
Debt principle plus
$32,000 in fees
- $400,000 expenses of
the offer
- $ 300,000 working
capital;
Prosed use of remaining funds:
Amount remaining = $1,562,373
for growth and acquisition
opportunities for the Company
and working capital. In
accordance with an entitlement
issue prospectus dated 2 Sep
2019.
34,495,370 Quoted Options issued pursuant to the Entitlement Issue and Nil cash consideration - For every Consideration = For every two (2)
Options5 Placement to professional and sophisticated two (2) shares subscribed for and shares subscribed for and issued
investors. issued under the Placement and under the Placement and
Entitlement Issue, the Company Entitlement Issue, the Company
issued one (1) free-attaching will issue one (1) free-attaching
Option with a $0.065 exercise price Option with a $0.065 exercise
and an expiry date of price and an expiry date of
31 December 2020. 31 December 2020.
Current value3 = $747,205 or
$0.0217 per option based on a
Black-Scholes valuation at date
of issue
20
Issue price and discount to Market
Date Quantity Class Recipients Form of consideration
Price (if applicable)1
101,028,111 Shares4 Shares were issued to the following parties pursuant No issue price (non-cash Consideration = issued as
to the resolutions specified of Notice of Meeting consideration). repayment of debt or services
dated 23 September 2019: with a deemed issue price of
$0.065
• 11,138,462 Shares to Consultants (Ellesmere
Investments Pty Ltd (or its nominee), Big Leap Current value3 = $6,263,743
Pty Ltd (or its nominee), Houstan Group Pty Ltd
(or its nominee),Mr Robert Brierley (or its
nominee), Transocean Securities Pty Ltd (or its
nominee) , TORQ Murray trading as “TORQ
Murray Lawyer” (or its nominee), Mr Jimmy
Caffieri & Mrs Lucia Caffieri (or its nominee) ,
Crossbay Pty Ltd (or its nominee), Assert
Corporate & Investor Relations Pty Ltd trading
as “Chapter One Advisors” (or its nominee)
(pursuant to Resolutions 3 to 11)
• 82,197,341 Shares issued to Ben Collier
Investments Pty Ltd (or its nominee), SEMC2 Pty
Ltd (or its nominee), MAK Property Group Pty
Ltd(or its nominee), Daring Investments Pty Ltd
(or its nominee), Teldar Real Estate Pty Ltd (or its
nominee) for Debt to Equity Conversion
(Resolutions 12 to 16)
• 7,692,308 Shares issued in repayment of
Kalonda debt (Resolution 17)
Refer to Notice of General Meeting dated
23 September 2019.
58,558,184 Unquoted Options were issued to the following parties pursuant Nil cash consideration Consideration = issued as
Options6 to the resolutions specified of Notice of Meeting repayment of debt or services.
Options with a $0.065 exercise
dated 23 September 2019:
price and an expiry date of Current value3 = $1,268,431 or
• 12,899,074 Options issued to the Joint Lead 31 December 2020. $0.0217 per Option based on a
Managers (or their nominees) (Resolutions 1 Black-Scholes valuation at date
and 2); of issue
• 41,098,670 Options issued for Debt to Equity
Conversion (Resolutions 12 to 16)
• 3,846,154 Options issued in repayment of
Kalonda debt (Resolution 17)
21
Issue price and discount to Market
Date Quantity Class Recipients Form of consideration
Price (if applicable)1
• 714,286 Options issued to Kalonda (Resolution
18)
Refer to Notice of General Meeting dated
23 September 2019.
Issue – 3 October 2019 5,980,205 Shares4 Issued to directors of the Company including Paul No issue price (non-cash Consideration = issued in lieu of
Niardone, Andrew Jensen, John Kolenda and Adam consideration). director fees amounting to
Appendix 3B – 8 October 2019 Davey in lieu of directors’ fees (following shareholder $388,713.
approval of resolutions 19-22 at the General Meeting
held on 23 September 2019) Current value3 = $370,773
Refer to Notice of General Meeting dated
23 September 2019.
Notes:
1. Market Price means the closing price on ASX (excluding special crossings, overnight sales and exchange traded option exercises). For the purposes of this table
the discount is calculated on the Market Price on the last trading day on which a sale was recorded prior to the date of issue of the relevant Equity Securities.
2. This is a statement of current intentions as at the date of this Notice. As with any budget, intervening events and new circumstances have the potential to affect
the manner in which the funds are ultimately applied. The Board reserves the right to alter the way the funds are applied on this basis.
3. In respect of quoted Equity Securities the value is based on the closing price of the Shares ($0.062) on the ASX on 15 October 2019. In respect of the value of
Options is measured using the Black & Scholes option pricing model. Measurement inputs include the Share price on the measurement date, the exercise price,
the term of the Option, the impact of dilution, the expected volatility of the underlying Share (based on weighted average historic volatility adjusted for changes
expected due to publicly available information), the expected dividend yield and the risk free interest rate for the term of the Option. No account is taken of any
performance conditions included in the terms of the Option other than market-based performance conditions (i.e. conditions linked to the price of Shares).
4. Fully paid ordinary shares in the capital of the Company, ASX Code: AU1 (terms are set out in the Constitution).
5. Quoted Options, exercisable at $0.030 each, on or before 31 December 2020. The full terms and conditions were disclosed in the notice of meeting for the
shareholder meeting held on 23 September 2019.
6. Unquoted Options, exercisable at $0.30 each, on or before three (3) years from the date of issue. The full terms and conditions were disclosed in the notice of
meeting for the shareholder meeting held on 28 November 2018.
22
SCHEDULE 2 – TERMS AND CONDITIONS OF PERFORMANCE RIGHTS AND OPTION PLAN
The principle terms of the Performance Rights and Options Plan (Plan) are summarised
below:
(a) Eligibility
Participants in the Plan may be:
(i) a Director (whether executive or non-executive) of the Company or any
Associated Body Corporate of the Company (each, a Group Company);
(ii) a full or part time employee of any Group Company;
(iii) a casual employee or contractor of a Group Company to the extent
permitted by ASIC Class Order 14/1000 as amended or replaced (Class
Order); or
(iv) a prospective participant, being a person to whom the offer is made but
who can only accept the offer if an arrangement has been entered into
that will result in the person becoming a participant under subparagraphs
(i), (ii), or (iii) above,
who is declared by the Board to be eligible to receive grants of Performance
Rights under the Plan (Eligible Participants).
(b) Offer
The Board may, from time to time, in its absolute discretion, make a written offer
to any Eligible Participant (including an Eligible Participant who has previously
received an offer) to apply for a Performance Right or an Options (Award or
Awards as the context requires), upon the terms set out in the Plan and upon such
additional terms and conditions as the Board determines (Offer).
(c) Plan limit
The Company must have reasonable grounds to believe, when making an offer,
that the number of Shares to be received on exercise of Awards offered under an
offer, when aggregated with the number of Shares issued or that may be issued
as a result of offers made in reliance on the Class Order at any time during the
previous 3 year period under an employee incentive scheme covered by the
Class Order or an ASIC exempt arrangement of a similar kind to an employee
incentive scheme, will not exceed 5% of the total number of Shares on issue at the
date of the offer.
(d) No consideration
Performance Rights granted under the Plan will be issued for nil cash
consideration. Unless the Options are quoted on the ASX, Options issued under
the Plan will be issued for no more than nominal cash consideration.
(e) Vesting Conditions
An Award may be made subject to vesting conditions as determined by the
Board in its discretion and as specified in the offer for the Awards (Vesting
Conditions).
2940-11/2284687_13 23
(f) Vesting
The Board may in its absolute discretion (except in respect of a change of control
occurring where Vesting Conditions are deemed to be automatically waived) by
written notice to a Participant (being an Eligible Participant to whom Awards have
been granted under the Plan or their nominee where the Awards have been
granted to the nominee of the Eligible Participant (Relevant Person)), resolve to
waive any of the Vesting Conditions applying to Awards due to:
(i) special circumstances arising in relation to a Relevant Person in respect
of those Awards, being:
(A) a Relevant Person ceasing to be an Eligible Participant due to:
(I) death or total or permanent disability of a Relevant
Person; or
(II) retirement or redundancy of a Relevant Person;
(B) a Relevant Person suffering severe financial hardship;
(C) any other circumstance stated to constitute “special
circumstances” in the terms of the relevant offer made to and
accepted by the Participant; or
(D) any other circumstances determined by the Board at any time
(whether before or after the offer) and notified to the relevant
Participant which circumstances may relate to the Participant, a
class of Participant, including the Participant or particular
circumstances or class of circumstances applying to the
Participant,
(Special Circumstances), or
(ii) a change of control occurring; or
(iii) the Company passing a resolution for voluntary winding up, or an order is
made for the compulsory winding up of the Company.
(g) Lapse of an Award
An Award will lapse upon the earlier to occur of:
(i) an unauthorised dealing in, or hedging of, the Award occurring;
(ii) a Vesting Condition in relation to the Award is not satisfied by its due date,
or becomes incapable of satisfaction, as determined by the Board in its
absolute discretion, unless the Board exercises its discretion to waive the
Vesting Condition and vest the Award;
(iii) in respect of unvested Awards only, an Eligible Participant ceases to be
an Eligible Participant, unless the Board exercises its discretion to vest the
Award in the circumstances set out in paragraph (f) or the Board resolves,
in its absolute discretion, to allow the unvested Awards to remain
unvested after the Relevant Person ceases to be an Eligible Participant;
(iv) in respect of vested Awards only, a relevant person ceases to be an
Eligible Participant and the Award granted in respect of that person is not
24
exercised within one (1) month (or such later date as the Board
determines) of the date that person ceases to be an Eligible Participant;
(v) the Board deems that an Award lapses due to fraud, dishonesty or other
improper behaviour of the Eligible Participant;
(vi) the Company undergoes a change of control or a winding up resolution
or order is made and the Board does not exercise its discretion to vest the
Award; and
(vii) the expiry date of the Award.
(h) Shares
Shares resulting from the exercise of the Awards shall, subject to any Sale
Restrictions (refer paragraph (i)) from the date of issue, rank on equal terms with
all other Shares on issue.
(i) Sale Restrictions
The Board may, in its discretion, determine at any time up until exercise of Awards,
that a restriction period will apply to some or all of the Shares issued to an Eligible
Participant (or their eligible nominee) on exercise of those Awards up to a
maximum of five (5) years from the grant date of the Awards. In addition, the
Board may, in its sole discretion, having regard to the circumstances at the time,
waive any such restriction period determined.
(j) No Participation Rights
There are no participating rights or entitlements inherent in the Awards and holders
will not be entitled to participate in new issues of capital offered to Shareholders
during the currency of the Awards.
(k) Change in exercise price or number of underlying securities
Unless specified in the offer of the Awards and subject to compliance with the ASX
Listing Rules, an Award does not confer the right to a change in exercise price or
in the number of underlying Shares over which the Award can be exercised.
(l) Reorganisation
If, at any time, the issued capital of the Company is reorganised (including
consolidation, subdivision, reduction or return), all rights of a holder of an Award
are to be changed in a manner consistent with the Corporations Act and the ASX
Listing Rules at the time of the reorganisation.
(m) Trust
The Board may, at any time, establish a trust for the sole purpose of acquiring and
holding Shares in respect of which a Participant may exercise, or has exercised,
vested Awards, including for the purpose of enforcing the disposal restrictions and
appoint a trustee to act as trustee of the trust. The trustee will hold the Shares as
trustee for and on behalf of a Participant as beneficial owner upon the terms of
the trust. The Board may at any time amend all or any of the provisions of the Plan
to effect the establishment of such a trust and the appointment of such a trustee.
25
(n) Amendments
Subject to express restrictions set out in the Plan and complying with the
Corporations Act, ASX Listing Rules and any other applicable law, the Board may,
at any time, by resolution amend or add to all or any of the provisions of the Plan,
including giving any amendment retrospective effect.
26
PROXY FORM
THE AGENCY GROUP AUSTRALIA LIMITED
ACN 118 913 232
ANNUAL GENERAL MEETING
I/We
of:
being a Shareholder entitled to attend and vote at the Meeting, hereby appoint:
Name:
OR: the Chair of the Meeting as my/our proxy.
or failing the person so named or, if no person is named, the Chair, or the Chair’s nominee, to vote in
accordance with the following directions, or, if no directions have been given, and subject to the relevant
laws as the proxy sees fit, at the Meeting to be held at 68 Milligan Street, Perth WA 6000, on 29 November
2019 at 12.30PM AWST, and at any adjournment thereof.
AUTHORITY FOR CHAIR TO VOTE UNDIRECTED PROXIES ON REMUNERATION RELATED RESOLUTIONS
Where I/we have appointed the Chair as my/our proxy (or where the Chair becomes my/our proxy by
default), I/we expressly authorise the Chair to exercise my/our proxy on Resolutions 1 and 7 (except
where I/we have indicated a different voting intention below) even though Resolutions 1 and 7 is
connected directly or indirectly with the remuneration of a member of the Key Management Personnel,
which includes the Chair.
CHAIR’S VOTING INTENTION IN RELATION TO UNDIRECTED PROXIES
The Chair intends to vote undirected proxies in favour of all Resolutions. In exceptional circumstances the
Chair may change his/her voting intention on any Resolution. In the event this occurs an ASX
announcement will be made immediately disclosing the reasons for the change.
Voting on business of the Meeting FOR AGAINST ABSTAIN
Resolution 1 Adoption of Remuneration Report
Resolution 2 Election of Director – Mr Mitchell Atkins
Resolution 3 Election of Director – Mr Andrew Jensen
Resolution 4 Re-election of Director – Mr Adam Davey
Resolution 5 Approval of 10% Placement Capacity
Resolution 6 Replacement of Constitution
Resolution 7 Adoption of Performance Rights and Option Plan
Please note: If you mark the abstain box for a particular Resolution, you are directing your proxy not to vote on that
Resolution on a show of hands or on a poll and your votes will not be counted in computing the required majority on
a poll.
If two proxies are being appointed, the proportion of voting rights this proxy represents is: %
Signature of Shareholder(s):
Individual or Shareholder 1 Shareholder 2 Shareholder 3
Sole Director/Company Secretary Director Director/Company Secretary
Date:
Contact name: Contact ph (daytime):
Consent for contact by e-mail
E-mail address: in relation to this Proxy Form: YES NO
27
Instructions for completing Proxy Form
1. (Appointing a proxy): A Shareholder entitled to attend and cast a vote at the Meeting is
entitled to appoint a proxy to attend and vote on their behalf at the Meeting. If a Shareholder
is entitled to cast 2 or more votes at the Meeting, the Shareholder may appoint a second proxy
to attend and vote on their behalf at the Meeting. However, where both proxies attend the
Meeting, voting may only be exercised on a poll. The appointment of a second proxy must be
done on a separate copy of the Proxy Form. A Shareholder who appoints 2 proxies may specify
the proportion or number of votes each proxy is appointed to exercise. If a Shareholder
appoints 2 proxies and the appointments do not specify the proportion or number of the
Shareholder’s votes each proxy is appointed to exercise, each proxy may exercise one-half of
the votes. Any fractions of votes resulting from the application of these principles will be
disregarded. A duly appointed proxy need not be a Shareholder.
2. (Direction to vote): A Shareholder may direct a proxy how to vote by marking one of the boxes
opposite each item of business. The direction may specify the proportion or number of votes
that the proxy may exercise by writing the percentage or number of Shares next to the box
marked for the relevant item of business. Where a box is not marked the proxy may vote as
they choose subject to the relevant laws. Where more than one box is marked on an item the
vote will be invalid on that item.
3. (Signing instructions):
• (Individual): Where the holding is in one name, the Shareholder must sign.
• (Joint holding): Where the holding is in more than one name, all of the Shareholders
should sign.
• (Power of attorney): If you have not already provided the power of attorney with the
registry, please attach a certified photocopy of the power of attorney to this Proxy
Form when you return it.
• (Companies): Where the company has a sole director who is also the sole company
secretary, that person must sign. Where the company (pursuant to Section 204A of
the Corporations Act) does not have a company secretary, a sole director can also
sign alone. Otherwise, a director jointly with either another director or a company
secretary must sign. Please sign in the appropriate place to indicate the office held.
In addition, if a representative of a company is appointed pursuant to Section 250D
of the Corporations Act to attend the Meeting, the documentation evidencing such
appointment should be produced prior to admission to the Meeting. A form of a
certificate evidencing the appointment may be obtained from the Company.
4. (Attending the Meeting): Completion of a Proxy Form will not prevent individual Shareholders
from attending the Meeting in person if they wish. Where a Shareholder completes and lodges
a valid Proxy Form and attends the Meeting in person, then the proxy’s authority to speak and
vote for that Shareholder is suspended while the Shareholder is present at the Meeting.
5. (Lodgement of Proxy Form): Proxy forms can be lodged:
(a) by completing and signing the enclosed Proxy Form and returning by:
(i) post to the Company C/O Advaned Share Registry Services, 110 Stirling
Highway Nedlands WA 6009; or
(ii) facsimile to the Company on facsimile number +61 8 9262 3723.
so that it is received not less than 48 hours prior to commencement of the Meeting.
Proxy Forms received later than this time will be invalid.
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