G. J. COLES' DISPUTE

Poverty Bay Herald, Volume LXIII, Issue 19135, 2 October 1936, Page 10

G. J. COLES' DISPUTE

COMPLETE AGREEMENT FOUNDER REAPPOINTED Complete agreement has now been reached in Iho recent difference in the directorate of (i. J. Coles, limited, Melbourne, and the suggested meeting of .shareholders has been cancelled. Following a meeting of directors last week it was announced that Mr. G. J. Coles had been reappointed chairman of directors, that it had been decided that in future the remuneration of directors should bo disclosed to shareholder*, and that two representatives of outside shareholders should bo invited to join the board in place of two executive directors. The reappointment of Mr. CI. J. Coles as chairman and the decision to disclose the directors' remuneration means, that, in these two matters, the other directors have accepted some of the terms of settlement "as outlined in the circulars issued to shareholders by Mr. G. JColes, In regard to the'third matter, however, they have made, only a partial concession, though they have abandoned their proposal, to increase the number of directors from seven to nine.

The dispute arose over the refusal of the chairman, Mr. A. W. Coles, at the annual meeting on August 26 to disclose Ilie amounts paid to the directors,_ all but one of whom bold executive positions in the company. Subsequently, Messrs. A. W. Coles and F. P. Derham resigned from the board of directors, and a meeting of shareholders was called for September 23 to ask for directions as to the management of the company. Mr. G. J. Coles, who had been deposed from his position of chairman and governing director of the company before the annual meeting, strongly supported shareholders who favoured the disclosure of payments to the directors, and advanced the following policy: That two representatives* of the outside shareholders should be appointed to the board in placo of two executive directors who were to resign; disclosure to shareholders of the remuneration of directors; and his reinstatement in the office of chairman of directors.

To make wav for the two new directors, Messrs. M. B. Moffatt and F. G. Coles resigned. Mr. A. W. Coles was reappointed managing director and Mr. F. P. Derham was reappointed a director. The directors other, than Mr. G. J. Coles expressed the opinion toward the end of the controversy that no remuneration should be paid to the managing director or to any other executive director except by way of salary, and that such salary should be subject to the annual approval of the shareholders-. v \