Australian exec calls for short selling ban
15 November 2016 Sydney
Image: Shutterstock
The outspoken executive chair of Australian retail chain Harvey-Norman has blamed a short selling conspiracy for spreading malicious rumours and called for a ban on the practice.
Gerry Norman, who co-founded the Harvey-Norman franchise in 1961, told attendees at the recent annual general meeting that he suspected short sellers had infiltrated the meeting and were trying to drive down the company’s share price by spreading false and misleading information.
He reportedly asked anyone who shouldn’t be there to leave immediately, according to multiple reports.
The accusations came as a rebuttal to multiple claims that Harvey-Norman lacked transparency in its annual reports in recent years, including reportedly failing to clearly disclose a AUD 62 million (USD 46.9 million) investment in a start-up that has so far failed to turn a profit. Norman dismissed the investment as "tactical support" when questioned during the meeting.
Norman named Australian hedge fund Bronte Capital, Singapore’s APS Asset Management and proxy adviser Ownership Matters as being members of a “gang” of “special interest groups” looking for profit at the expense of his company.
Norman Harvey’s share price has since fallen from AUD 4.72 (USD 3.57) on Monday morning, the day of the meeting, down to AUD 4.5 (USD 3.4) at market close the day after.
Despite the controversies, the firm’s 2016 annual report showed it turned a healthy 30 percent growth in profit on 2015, worth AUD 348.61 million (USD 263.65) after tax.
Following the outburst, Norman is now facing calls from the Australian Shareholders’ Association (ASA) to be replaced by an independent non-executive director.
ASA chair Diana D'Ambra stated: “The incomplete reporting of the company’s controlled entities was also disappointing and contributed to the decision to oppose the accounts.”
“The experienced ASA representatives who attended yesterday’s annual general meeting, including two directors, were all very disappointed with the leadership shown by Gerry Harvey and believe substantial change is now warranted,” she added.
Gerry Norman, who co-founded the Harvey-Norman franchise in 1961, told attendees at the recent annual general meeting that he suspected short sellers had infiltrated the meeting and were trying to drive down the company’s share price by spreading false and misleading information.
He reportedly asked anyone who shouldn’t be there to leave immediately, according to multiple reports.
The accusations came as a rebuttal to multiple claims that Harvey-Norman lacked transparency in its annual reports in recent years, including reportedly failing to clearly disclose a AUD 62 million (USD 46.9 million) investment in a start-up that has so far failed to turn a profit. Norman dismissed the investment as "tactical support" when questioned during the meeting.
Norman named Australian hedge fund Bronte Capital, Singapore’s APS Asset Management and proxy adviser Ownership Matters as being members of a “gang” of “special interest groups” looking for profit at the expense of his company.
Norman Harvey’s share price has since fallen from AUD 4.72 (USD 3.57) on Monday morning, the day of the meeting, down to AUD 4.5 (USD 3.4) at market close the day after.
Despite the controversies, the firm’s 2016 annual report showed it turned a healthy 30 percent growth in profit on 2015, worth AUD 348.61 million (USD 263.65) after tax.
Following the outburst, Norman is now facing calls from the Australian Shareholders’ Association (ASA) to be replaced by an independent non-executive director.
ASA chair Diana D'Ambra stated: “The incomplete reporting of the company’s controlled entities was also disappointing and contributed to the decision to oppose the accounts.”
“The experienced ASA representatives who attended yesterday’s annual general meeting, including two directors, were all very disappointed with the leadership shown by Gerry Harvey and believe substantial change is now warranted,” she added.
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