davnet, what ever happened to this stock?, page-7

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    This from the ASA (Shareholders association)

    " Report of AGM

    About 50 shareholders and visitors gathered at the Crown Casino in Melbourne for the U X C Ltd AGM, on Thursday 28 November. An ASA representative was also there.

    UXC has been formed by the merger of Utility Services Corporation Ltd (USC) and DVT Holding Ltd (formerly Davnet). This was done by a reverse take-over of DVT by USC. Why this complicated process? Well, we believe it was to foil Mr Farooq Khan's raid on DVT. The Chairman, Geoff Lord, also said that this process gave them a tax advantage.

    The day before this AGM, shareholders received a special dividend of 3 cents per share, fully franked. For former USC shareholders, this brought to an effective full year dividend of 5 cents – a return of approx 9% fully franked. At the AGM, the Executive Chairman, Geoff Lord, also forecasted a similar return for next year.

    With this sort of results, who would dare to be critical of Mr Lord? A daunting task for the ASA representative? Well, the ASA rep. complimented the company for its very good performance, however raised concern that as USC officially no longer exists, its annual report (incl financial accounts) were not available and tabled at this UXC AGM. Shareholders have received the annual report of DVT to 30 June, which was of little relevance to former USC shareholders.

    The ASA voted against the re-election of Mr Geoff Lord as a director, because his other directorships exceeded the ASA guideline, by a significant margin. The ASA rep. told the meeting that shareholders should be concerned about the workload and hence the health of the directors, particularly an important person to their company, such as Mr Lord.

    The Resolution "to issue 2 million options to the Executive Chairman", which we would have opposed as the hurdle did not conform to ASA’s criteria, was withdrawn.

    All other Resolutions were passed with our support. "

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