to bringing his nominees for the board before shareholders. Lew has been engaged in a three-month battle with Myer’s board over the direction of the company after buying a 10.8 per cent stake in the business in May through Premier Investments. He used that stake, alongside the support of what he said was approximately 10,000 other shareholders to vote against Myer’s resolutions at its AGM in Melbourne on Friday. He was unsuccessful in blocking the election of now-chairman Gary Hounsell, who garnered the support of 69.8 per cent of proxy votes. Myer’s other board nominees have also secured election ahead of the results of a full poll, with Julie Ann Morrison receiving 70.5 per cent of proxies in favour and JoAnne Stephenson garnering 69.25 per cent. Lew and his supporters did, however, secure enough support to register a first strike against Myer’s remuneration report, exceeding the 25 per cent threshold with 29 per cent of proxies voting against its adoption. Should 25 per cent of shareholders vote against Myer’s remuneration report next year (a second strike) then shareholders will vote on a spill motion for Myer’s board. Myer also failed to secure the 75 per cent of votes it required to pass two special resolutions, one which would have enabled online shareholder voting at subsequent AGMs and another which would have renewed proportional takeover protections in the company’s constitution. Myer is opposed to an EGM, saying in a statement to the ASX after the AGM that shareholders had delivered the board a “clear mandate” and that the result should be respected. “Myer’s shareholders have spoken and as chairman of the company I am delighted with the clear mandate we have received to continue with the implementation of the new Myer strategy,” said newly elected chairman Hounsell. “With Christmas trading upon us and heightened competition it has never been more important that we get on with the job our shareholders have asked us to do. Myer’s shareholders’ wishes are clear, all parties should now respect the outcome.” But Lew said a “clear message” had been sent to the board, noting that if it were not for the support of Investors Mutual’s Anton Tagliaferro Premier would have been successful in its bid to block Hounsell’s election. “Together we’ve sent the Myer board a very strong message today: their time is up and change is on the way,” he said. “The shareholders have lost absolute faith in the Myer directors and it’s about time they’re honest with their shareholders. Lew claimed that Investors Mutual’s investment director Anton Tagliaferro decided to vote against Premier after it decided not to take him up on an offer to buy out his 9.8 per cent stake in Myer, which he claims Investors Mutual have lost $55 million on. “If Tagliaferro voted with Premier, Mr Hounsell and other directors wouldn’t have got on the board today…Mr. Tagliaferro is part of any disappointments Myer has in the future.” However, speaking to Inside Retail, Tagliaferro said Investors Mutual never offered its stake to Myer, rejecting any assertion that Investors Mutual is responsible for the outcome. “[We] never offered Mr Lew our stake,” he said, declining to comment further on negotiations with Premier in the lead up to Myer’s AGM. Tagliaferro said he has not done a calculation on how much Investors Mutual or Premier has lost on its investment in Myer, saying he doesn’t think there are any shareholders who have made much money off the department store since it listed in 2009. He said Investors Mutual are happy with Hounsell’s appointment and take a view that its losses are not crystallised. “The board and everybody there is working hard to turn the situation round its obviously a very tough retail environment as Lew himself knows,” he said. Investors Mutual will “strongly” lobby against Premier’s nominees at any subsequent EGM, which could disrupt any plans Lew might have to secure support for a presence on the company’s board. Lew also lambasted Myer’s board for “misleading” commentary about the extent of Premier’s conflict of interest if its nominees made it onto the board, saying that Premier itself only does $6 million worth of business with the department store. Lew’s nominees include former Myer-Grace Bros boss Terry McCartney, Abacus Property CIO Steven Sewell and former UBS banker Tim Antoine – all of which he says will bring the necessary experience to Myer’s board to turn around the business. He also said he’s not concerned about possible retribution from Myer, including the possibility that the department store could throw his products out of its stores. Lew was represented at Friday’s AGM by by lawyers Jeremy Leibler and Jeremy Lanzer from law firm Arnold Block Lieibler on behalf of Premier. Liebler quizzed Myer’s now former chairman Paul McClintock on whether shareholders could expect another profit downgrade in the coming months and how much the board was spending on the “defence of director’s reputations” following a sustained campaign against the company’s leadership from Lew in recent months. McClintock did not rule out another downgrade, but said the upcoming Christmas period would be crucial for the company’s half-year performance and outlined the board’s commitment to its continuous disclosure obligations. Liebler also asked McClintock about whether he was aware of any current class action currently pending against the company or whether there are any ASIC investigations underway or being considered in relation to Myer’s balance sheet impairments earlier this year. McClintock declined to comment on any ASIC investigation that may be underway and said he was not aware of any current class action being levied against Myer. McClintock subsequently said he had made an explicit attempt in his remarks to depersonalise the conflict between Myer’s board and Lew with the hope that it may be possible to rebuild a better relationship with the veteran retailer. Access exclusive analysis, locked news and reports with Inside Retail Weekly. Subscribe today and get our premium print publication delivered to your door every week.