SHAREBLOCK LIMITED AGM AGM 11 11 th th August August 2012 2012 - PowerPoint PPT Presentation

HERMANUSDOORNS SHAREBLOCK LIMITED AGM AGM 11 11 th th August August 2012 2012

AGENDA  Welcome  Special welcome to all new shareholders  Attendance Register  Notice Convening the Meeting and Quorum  Appointment of Referee and assistant to administer and count votes  Apologies and Proxies  MD’s Report 11 th August 2012 11 th August 2012 AGM - 2012 2

AGENDA … cont  Presentation of Financial Statements  Ordinary Business  Resolutions 1,2,3 and 4  Special Business  Special Resolution 1  Capital Fund Utilisation  Update on Business Plan  General  Closure  Lunch – directly after the meeting 11 th August 2012 11 th August 2012 AGM - 2012 3

Matters from last AGM  Card System and voting rights  Card colours – only two  Paid by 31 st March  Not paid by 31 st March  No exception  Farm access WILL be denied to shareholders if they are not FULLY paid up on ALL monies due to the Company  WILL be enforced  Zero Tolerance 11 th August 2012 11 th August 2012 AGM - 2012 4

MD’s Report 5 11 th August 2012 AGM - 2012

Late Levies  Late levies  At 31 March Debtors were R 564k  last year they were R 488 k  As at 31 July they were still R 210k  Last year they were R262 k  UNACCEPTABLE  23 people - 25% dont pay on time!!!!!  Sadly – Its often the same people  Cost of late payments = R 4,000/month  Reaction  Shareholders claim that they are “victimised” when action is taken against them 11 th August 2012 11 th August 2012 AGM - 2012 6

MD’s Report  Corporate Governance  Continues to be a Board focus  Procedures in place  Audit Committee  Development of a Approvals framework  Segregation of Duties  Continued implementation of procedures  Performance Evaluation Process implemented  Improved communications 11 th August 2012 11 th August 2012 AGM - 2012 7

MD’s Report  A key focus of our medium term strategy remains on Fauna and Flora  Bush clearing  Good results achieved and further recommendations submitted by consultant (Fritz)  Under consideration of the Board  Rehabilitation of “ Borrow Pits”  Modification of many roads to prevent storm damage  Membership of the “Waterberg Nature Conservancy”  Game number control through capture  Baboon control  Selective shooting  Sand usage  Taking advice on this from Fritz 11 th August 2012 11 th August 2012 AGM - 2012 8

MD’s Report  Infrastructure improvement  Road upgrading remains an ongoing priority  Significant progress in this regard  Concrete strip up the mountain continuing but funded by the shareholder - E Grobelaar  Upgrade of sub-standard electrical cable in the mountain  Improved Water system of reservoirs – still on hold  Secured Generator for emergency  Assistance from Nic van As  Continued (annual) veld assessment – done by Fritz van Oudtshoorn  Following his recommendation  To be repeated each year 11 th August 2012 11 th August 2012 AGM - 2012 9

Game Capture  Game Capture the preferred method of game control  Culling no longer taking place except for humane reasons and the “Pot” for the AGM  Revenue to be ploughed back into Fauna and Flaura – mainly into bush clearing  2011/12 net receipts from Game capture were R82k  Last year R 65k  Further game capture will occur this year  To address the Kudu over crowding  Dependent on rainfall 11 th August 2012 11 th August 2012 AGM - 2012 10

Game Count Description Jun-03 Jun-04 Jun-05 Jun-06 Jun-07 Jun-08 Jun-09 Jun-10 Jun-11 Jun-12 Impala 125 160 190 110 129 125 115 120 135 140 Blesbok 30 50 35 25 22 9 9 9 9 8 Water Buck 13 16 20 21 30 25 30 25 25 27 Kudu 65 80 100 90 101 100 100 115 135 145 Giraffe 2 2 5 6 8 12 13 15 11 10 Bosbok 20 40 45 40 39 40 40 40 40 40 Warthog 25 25 40 40 42 40 40 40 40 40 Blouwildebees 24 33 38 40 45 30 35 30 33 30 Zebra 9 9 10 9 10 13 15 17 17 19 Gemsbok 9 7 7 6 6 5 5 6 7 7 Steenbok 11 12 15 16 16 16 16 16 16 16 Rooihartebees 19 19 23 21 24 28 30 25 27 27 Klipspringer 14 14 15 20 20 20 20 20 20 20 Mount Reedbuck 10 10 10 10 10 10 10 Eland 5 5 7 8 Nyala 1 6 6 7 11 th August 2012 11 th August 2012 AGM - 2012 11

Rainfall History 1200 Rainfall Anaylsis 1000 800 Millimetres 600 161 161 400 200 0 1998/99 1999/00 2000/01 2001/02 2002/03 2003/04 2004/05 2004/05 2006/7 2007/08 2008/09 2009/10 2010/11 2011/12 Cummulative Annual 10 Year Avg 5 ear Average 3 Year Avg 11 th August 2012 11 th August 2012 AGM - 2012 12

Staff management  Management of the staff rests SOLELY with the Board and its management structure  All staff report directly to the farm manager who in in turn reports directly to the Board  Shareholders MUST NOT deal with any staff members directly and MUST deal through the established channels  Staff Quarters are “Out of Bounds” to shareholders 11 th August 2012 11 th August 2012 AGM - 2012 13

Staff management  Workmans ’ Compensation  Believed we were exempt  No longer the case – we must comply  Fully registered  Process of getting up to date – complete by year end  ALL contractors on site must be covered.  We will evict contractors unless this can be proven 11 th August 2012 11 th August 2012 AGM - 2012 14

Unaccompanied Visitors  Discussed often in order to protect privacy and the shareholders assets  Visitors MAY NOT visit the farm without a shareholder present  A continual problem  We will evict these visitors at great embarrassment to the particular shareholder 11 th August 2012 11 th August 2012 AGM - 2012 15

Security  An increasing problem in the area  Farm attacks  Death in front of the farm  Board request  Install radios (fixed or mobile)  Fire Assist  Intruder alert  Link into the farm alarm  Response to Alarms  Response by Farm Manager a problem from various aspects  Police will be notified as will the shareholder concerned  Board is currently investigating a revamped security system  Gate control – better access control  Night patrols  Signing in procedures 11 th August 2012 11 th August 2012 AGM - 2012 16

Shareholder Interference  Last Year - early  Reported to the Dept of Labour, Lephahale Municipality and the Building council  Not sure who reported this but definitely NOT the farm Directors nor Management  Cost the Company R 136,000 to comply  Question – Why not approach the Board?? 11 th August 2012 11 th August 2012 AGM - 2012 17

Shareholder Interference  Last Year - Late  We changed the bank accounts to FNB  Received a letter incorrectly addressed to me where shareholder stated: “ hulle maak my gat vol is jy seker die plaas bestuurder kry nie weer die geld nie ”  An initial denial ultimately resulted in a lengthy apology received from the shareholder 11 th August 2012 11 th August 2012 AGM - 2012 18

Shareholder Interference  This year  Again, an anonymous shareholder reported us to Lephahlale municipality for non- compliance on building plans  Many visits and a requirement to submit plans for most of the dwellings  Accusations that the “farm manager” reported this to the municipality  Board cant find any evidence of this despite numerous calls and visits to the municipality 11 th August 2012 11 th August 2012 AGM - 2012 19

Shareholder Interference  Another letter was incorrectly sent to the board wherein a shareholder states: “ Hierdie botteltjie gif van my het hulle aangevat tot Oom Daantjie in die kalwerhok. Tot Lepalale se baas het so groot geskrik, hy sal sorg dat Andre vir ons a brief vir verskoning stuur! Want sien sy het toe mos uitgevind dis die *&#*&% Andre Cochrane wat ‘n klag teen ons gaan le het” ALMAL wat hom Grief gee. Ons het a klomp goed vir John Hills gegee (maar hy weet nie wat ons alreeds gedoen het nie). Maar jy moet ook ASB navraag doen oor hierdie saak.  Board requested a meeting with the sender and recipient of this letter and offered to meet in Pretoria – their place of residence – to better understand the situation.  Response: “ It is inconvenient for us to meet the Board in Pretoria so please meet at the farm” Further they stated “ that this smacked of a Secret Meeting” and requested that we call a General Meeting  The Board took exception, not only to the tone but the implied allegations and wrote an appropriate letter to the relevant shareholder and indicated to him that we have no alternative but to inform the Shareholder body.  To date, we have not received any response 11 th August 2012 11 th August 2012 AGM - 2012 20

The Offending Shareholders  Willie Vos  Wynand Mulder 11 th August 2012 11 th August 2012 AGM - 2012 21

Shareholder Interference  Appeal to Shareholders  Having private correspondence between shareholders about Company matters serves little purpose, undermines the Board, wastes time and money, and is often based on unsubstantiated rumour.  Please, work through the Board on all shareholder matters  To avoid such situations in future and wasting the Board’s time and the shareholders’ money 11 th August 2012 11 th August 2012 AGM - 2012 22