Millions of votes expected against Contact directors

Millions of votes are expected to be cast for the dumping of Contact Energy's independent directors at the company's annual meeting this week.

The Shareholders Association has put up three resolutions for the removal of Contact deputy chairman Phil Pryke and directors Tim Saunders and John Milne. It claims they failed to represent shareholders' interests during the proposed merger with Origin Energy.

But Mr Saunders, the chairman of Feltex, may no longer be a director of Contact by the time of the annual meeting this Thursday. He resigned from his directorship of Pyne Gould Guinness last Friday and is expected to resign from other directorships.

His departure from the Contact board may defuse some shareholder dissatisfaction at the meeting, The Dominion Post reported today.

Resolutions put forward by institutional shareholder Brook Asset Management are aimed at weakening Origin's grip on Contact and one calls for new chief executive David Baldwin to cut his ties with Origin or be replaced. He is employed by Origin and seconded to Contact.

Origin Energy is expected to use its 51.4 per cent of the votes to sink all the shareholders' resolutions.

Shareholders Association chairman Bruce Sheppard said he expected that excluding Origin, a majority would want Mr Pryke and Mr Saunders removed. He was not so sure about Mr Milne.

WHAT: Contact Energy Annual General Meeting (AGM)
WHEN: 10.30am this Thursday
WHERE: Ellerslie Racecourse, Auckland

- NZPA