Unilever NV – AGM 30 April 2020
In general, Unilever NV ("Unilever") is in compliance with the Dutch regulations relating to the organisation and procedures of the Annual General Meeting.
Under ITEMS 6-17, it is proposed to (re-)elect the board of directors.
In view of concerns over aggregate time commitments, ECGS recommends to vote OPPOSE to the re-election of Ms. Judith Hartmann (ITEM 9).
Under ITEM 22 authorisation is sought to repurchase own shares. Although the magnitude of the authority requested would meets its guidelines, ECGS considers that it is currently NOT the right moment to proceed to a new share buyback programme in view of the recent events relating to Covid-19. Accordingly, ECGS recommends to vote OPPOSE.
Finally, under ITEM 23, authority is sought for a capital reduction by cancellation of part of its holding of treasury shares. In ECGS'view, a reduction of share capital by cancellation of shares is a technical issue that does not negatively impact shareholder interests. As a matter of principle, ECGS will only oppose share cancellations which significantly deplete cash flow provided that a company is not able to pay a dividend. However, whereas ECGS acknowledges that the company is currently well capitalised, it considers that it should wait until next year to cancel its repurchased shares. In case there is a further deterioration of the market, Unilever could decide to re-issue the treasury shares to strengthen its capital base. Therefore, ECGS recommends to OPPOSE.
Unilever is engaged in the supply of consumer goods in foods, household care and personal products. Co.'s activities are carried out through four categories: Personal Care, sales of skin care and hair care products, deodorants and oral care products; Home Care, sales of home care products, such as powders, liquids and capsules, soap bars and a range of cleaning products; Foods, sales of soups, bouillons, sauces, snacks, mayonnaise, salad dressings, margarines and spreads; and Refreshment, sales of ice cream and tea-based beverages. Co.'s products are sold in over 190 countries around the world.
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