THE NEWS WRAP: Shareholders handed greater powers over executive pay
Monday, June 20, 2011/
Company directors could be removed if they ignore shareholder concerns over their pay, under laws passed by the Senate last night.
From July 1, a ‘two strike’ rule will be introduced, whereby shareholders have the right to spill a board if a remuneration report receives a ‘no’ vote of 25% or more at two consecutive AGMs.
The bill also requires boards to declare the use of remuneration consultants, although a move by the Greens to cap executive salaries failed to make the legislation.
AMI founder buys company from administrators
Controversial erectile dysfunction business Advanced Medical Institute has been bought by its founder, Jacov ”Jack” Vaisman, from administrators.
Vaisman will pay around $900,000 in cash for the business, with the rest of the $4.3 million purchase price made up of debts to AMI’s creditors, which he controls.
AMI was put into administration just before Christmas, a day ahead of a lawsuit brought by the Australian Competition and Consumer Commission, which is attempting to shut down the business for alleged poor treatment of its patients.
Twiggy launches biotech venture
Billionaire mining magnate Andrew Forrest is to launch a new biotech venture on the stock market.
Forrest, who recently stood down as CEO of Fortescue Metals, has launched a reverse takeover of bioMD by unlisted Allied Medical, in which he is the biggest shareholder with 46%.
Following the ASX listing, bioMD aims to roll out its flagship product CardioCel, a soft-tissue patch that repairs conditions such as hole in the heart, by the end of the year.
The Dow Jones Industrial Average rose by 76.02 points to 12,080.38. The Australian dollar fell to 105.11 US cents.