Cromwell Board Seats Settled
Whilst Cromwell were keen to focus on their Strategy and Performance, the unit holders were more aware of the battle for the board seat that has been playing out.
Cromwell's largest shareholder ARA Asset Management (with 23.7%) of the units have been pushing for adoption of their recommendation to install Gary Weiss to the Board.
Cromwell has fought hard against the appointment, pointing out to shareholders that it was safer to appoint an independent board member as opposed to one who will potentially have conflicts of interests with ARA.
The AGM resolved the debate with unit holders voting in favour of the Cromwell proposal and keeping Gary Weiss off the Board. Cromwell rallied the troups to the AGM with 80% of shares cast in the meeting, as opposed to the usual 55%.
But in a loss to Cromwell, the Board suffered a first strike against the remuneration report with 53% of votes against the company's pay packages, setting up a show down for next year, which could after a second strike result in a spill of the Board.
ARA will unlikely retreat following this week's result. With 270 properties in 15 countries, Cromwell has developed a strong global platform and will continue to attract attention from global capital.