Shareholders at Majestic Wine were given a proxy voting form that included two common resolutions – a vote on the Remuneration Report and a vote on Remuneration Policy. But there was no description of the Remuneration Policy in the Annual Report. As a shareholder in the company, I found this somewhat baffling and therefore voted against the second of those resolutions on the basis of not knowing what I might be voting for.
The company subsequently withdrew those resolutions on the because being an AIM company they don’t legally need them, and it was a mistake to list them. But the amusing thing was that at today’s AGM the Chairman said that both resolutions got large majorities in favour on the proxies returned.
It is clear that a lot of shareholders therefore voted without reading the resolutions or understanding what they were voting for. Presumably either brain dead or simply having absolute faith in the directors’ recommendations.
Surely only when shareholders vote, and take the trouble to understand what they are voting for, will shareholder democracy really work. I would encourage everyone reading this to make sure you vote and find out what you are voting for and why!
A full report of the Majestic AGM is here.