Three directors had sought the sacking of two independent directors, but the two motions were lost when put to a vote.
The three directors — Steve Fawns, Troy Mauger and Brendan Barry — had announced they would resign if they lost the vote.
MIL chair Phil Snowden told the meeting he was disappointed to be facing the challenge to the two independent directors.
He had offered to resign if the vote went through. He also disclosed that after he was approached by the dissatisfied directors he had offered to step aside as chairman, in favour of an independent chairman, but the requisitioning directors had not accepted that.
“SInce being elected to the board in 2017, I have witnessed a persistent undercurrent of bullying and harassment of the directors of MIL,” Mr Snowden said.
He said he had seen independent directors harassed previously and it was to the credit of new directors Trisha Gordon and Robert Burbury that they had not succumbed.
Director Troy Mauger argued that the MIL board needed to demonstrate good governance, accountability and transparency. An annual operating plan was needed in alignment with the chief executive officer’s key performance indicators.
The retiring CEO, Ron McCalman, was called to the podium to explain why he had resigned (effective in June).
He said he made the decision in November as a result of tension over past decisions and he wanted to allow the company room to go forward.
Although the vote supported the status quo, shareholders sent a strong message of dissatisfaction, with the division in votes for each motion being about 200 votes.
The result triggered the pre-vote commitments of Mr Fawns, Mr Mauger and Mr Barry to resign from the board, despite a last minute attempt to withdraw their resignations.
Company secretary Nathan Holahan said a process will now be undertaken to appoint new directors.
“As communicated with shareholders in the lead up to the meeting, this result means that directors Steven Fawns, Brendan Barry and Troy Mauger will no longer be serving on the Murray Irrigation Board effective immediately,” Mr Holahan said when announcing the results via a shareholder update about 3pm on Wednesday.
Asked if he would be remaining as director after the events of the past few months, Mr Snowden said he would stay.
“I have an absolute commitment to the future of MIL and all shareholders. The election of the chairman will be determined by the new board once it is in place.”
He also believes he has the confidence of the remaining board members.
“Lachlan, Trisha and Robert have always respectfully and diligently contributed to the board table for the betterment of the company and its shareholders.”
Asked about his priorities for the immediate future, Mr Snowden said they were to have a fully constitutional board back in place in May, and continuing to work towards the outcomes of the strategic plan.
As for how the board can function three directors short, Mr Snowden said constitutionally, the board is unable to make any new decisions until they reach the minimum requirement of six directors.
“However, we are working towards having a fully constitutional board back in place in May.”
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