Board members: when enough is enough

Original article by Philip Baker
The Australian Financial Review – Page: 29 : 9-Sep-14

Analysis by Credit Suisse suggests that the number of directors on a listed company’s board can influence shareholder returns. The firm concludes that the optimum number of directors for companies with a market value of at least $A5bn is between nine and 11, and 6-8 in the case of those with a capitalisation of less than $A5bn. The majority of companies have 6-8 directors, although BHP Billiton and Crown Resorts each have 13

CORPORATES
CREDIT SUISSE (AUSTRALIA) LIMITED, BHP BILLITON LIMITED – ASX BHP, CROWN RESORTS LIMITED – ASX CWN, INSURANCE AUSTRALIA GROUP LIMITED – ASX IAG, QBE INSURANCE GROUP LIMITED – ASX QBE, AMCOR LIMITED – ASX AMC, SCENTRE GROUP – ASX SCG, AGL ENERGY LIMITED – ASX AGK, STOCKLAND – ASX SGP, SONIC HEALTHCARE LIMITED – ASX SHL, CALTEX AUSTRALIA LIMITED – ASX CTX, SYDNEY AIRPORT – ASX SYD, INCITEC PIVOT LIMITED – ASX IPL, MIRVAC GROUP – ASX MGR, DEXUS PROPERTY GROUP – ASX DXS, HARVEY NORMAN HOLDINGS LIMITED – ASX HVN, BLUESCOPE STEEL LIMITED – ASX BSL, JAMES HARDIE INDUSTRIES PLC – ASX JHX, METCASH LIMITED – ASX MTS, BENDIGO AND ADELAIDE BANK LIMITED – ASX BEN, FAIRFAX MEDIA LIMITED – ASX FXJ, CHALLENGER LIMITED – ASX CGF, ATLAS IRON LIMITED – ASX AGO, FLIGHT CENTRE TRAVEL GROUP LIMITED – ASX FLT, SEEK LIMITED – ASX SEK, INVESTA OFFICE FUND – ASX IOF, INDEPENDENCE GROUP NL – ASX IGO, WESFARMERS LIMITED – ASX WES, RIO TINTO LIMITED – ASX RIO, WESTFIELD CORPORATION – ASX WFD, FORTESCUE METALS GROUP LIMITED – ASX FMG, GOODMAN GROUP – ASX GMG, UNIVERSITY OF NEW SOUTH WALES, AUSTRALIAN SECURITIES EXCHANGE. CORPORATE GOVERNANCE COUNCIL, GMI RATINGS

Report damns NBN Co’s corporate governance

Original article by Anne Hyland
The Australian Financial Review – Page: 1 & 4 : 14-Aug-14

KordaMentha has been critical of the NBN Co board in its report on the entity’s corporate governance. The firm states in the report that directors who served on the board of the national broadband network roll-out manager between 2009 and September 2013 did not have enough experience and skills to manage Australia’s biggest infrastructure project. KordaMentha’s findings have been questioned in a letter signed by NBN Co directors Peter Hay, Gene Tilbrook, Harrison Young, Diane Smith-Gander, Siobhan McKenna, Terry Francis, Rick Turchini, Brad Orgill and Alison Lansley

CORPORATES
NBN CO LIMITED, TRANSFIELD SERVICES LIMITED – ASX TSE, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, KORDA MENTHA AND COLLEAGUES PTY LTD, ILLYRIA PTY LTD

Woodside buyback in doubt

Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 21 & 23 : 31-Jul-14

Woodside Petroleum shareholders will vote on a proposed share buyback at an extraordinary general meeting on 1 August 2014. The deal to buy $US2.68bn ($A2.85bn) worth of shares from Royal Dutch Shell must be supported by 75 per cent of votes, but a number of superannuation funds are expected to oppose it. There is concern that the selective buyback treats Shell more favourably than other Woodside shareholders

CORPORATES
WOODSIDE PETROLEUM LIMITED – ASX WPL, ROYAL DUTCH SHELL PLC, AUSTRALIAN COUNCIL OF SUPERANNUATION INVESTORS INCORPORATED, PLATO INVESTMENT MANAGEMENT LIMITED, ALPHINITY INVESTMENT MANAGEMENT PTY LTD, ISS PROXY AUSTRALIA, OWNERSHIP MATTERS PTY LTD, CGI GLASS LEWIS PTY LTD, MACQUARIE GROUP LIMITED – ASX MQG, AUSTRALIAN SHAREHOLDERS’ ASSOCIATION, WESTFIELD CORPORATION – ASX WFD, STANDARD AND POOR’S ASX 300 INDEX

CBA exposed to flood of claims

Original article by James Eyers, Phillip Coorey
The Australian Financial Review – Page: 1-Jun : 4-Jul-14

Commonwealth Bank of Australia (CBA) has announced a new compensation program. CEO Ian Narev said on 3 July 2014 that the bank is determined to rectify the problem of inappropriate advice being given to clients by the bank’s financial planning subsidiaries. Under the new program, customers who received advice between 1 September 2003 and 1 July 2012 can apply to the bank for an internal assessment

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, COMMONWEALTH FINANCIAL PLANNING LIMITED, FINANCIAL WISDOM LIMITED, MAURICE BLACKBURN PTY LTD, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF FINANCE, FINANCIAL PLANNING ASSOCIATION OF AUSTRALIA LIMITED

Canadian bank axes analysts in Newcrest fiasco

Original article by Anthony Klan
The Australian – Page: 21 : 26-Jun-14

Newcrest Mining has agreed to pay a penalty of $A1.2m for selectively briefing analysts in late May 2013. The Australian Securities & Investments Commission told the Federal Court that the company breached its continuous disclosure obligations by not informing the wider market as well of its downgraded gold output figures, but the analysts were not to blame. However, Geoff Breen and Michael Orphanides as well as head of research Peter Main departed Royal Bank of Canada (RBC) in mid-2013, soon after it received the inside knowledge from Newcrest. The investment bank has declined to comment

CORPORATES
NEWCREST MINING LIMITED – ASX NCM, ROYAL BANK OF CANADA, RBC CAPITAL MARKETS, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, FEDERAL COURT OF AUSTRALIA, BANK OF AMERICA AUSTRALIA LIMITED, MERRILL LYNCH (AUSTRALIA) PTY LTD, CREDIT SUISSE AG, COLONIAL FIRST STATE GLOBAL ASSET MANAGEMENT, COLONIAL HOLDING COMPANY LIMITED – ASX CNG, MACQUARIE BANK LIMITED – ASX MBL