spits summer - the Hawkesbury Blue Mountains Alpaca Region

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Spits & Pieces
Kerry Dwyer and Bob Richardson (also Directors of AAFL) both abstained from voting and there was one vote
against the motion.
[Comment: There is a view that AAA has invested so much into AAFL and its predecessor that to cease to do
so now would not only send a negative message but might (although not necessarily) reduce AAFL’s capacity
to operate into the future.
An alternative view is that AAA has “squandered” money by supporting a business that is failing.
Again, there is no simple answer. It is critical to the alpaca industry that the fleece end of the business be
successful. AAFL has some committed private shareholders who are not known for their willingness to throw
away money. The case put to NatCom to invest $31,000 was sufficient to convince those present – with one vote
against.]
There is still no firm plan regarding the conversion of shares in the former Co-Op to equity in AAFL, although
it is still “on the radar”. I understand that it is, and always has been, the intention of the Co-op Board of
Directors to convert members shares to equity in AAFL, however in order to do this it (the Co-op) must first
apply to the Registrar of Cooperatives. This has been done and the Co-op is still waiting on written advice.
When approved, the costs involved in doing this will be relatively high in the context of AAFL’s overall
position (e.g. managing 900 extra shareholders), but as mentioned above, there is a genuine effort being made
to finalise this.
Stay tuned and go direct to AAFL if you have concerns.
The value of AAA’s investment in AAFL has been written down by $128,660 (as part of the AAA Treasurer’s
Report). The full impact will appear in the AAA’s financial statements for November (see AAA web site). Note
that the AAA’s investment in AAFL is shown in the financial statements under the balance sheet item
“Investment in Uniquely Alpaca Pty Ltd”.
[Comment: There is some confusion about AAA’s representation on the Board of AAFL, so it is worthwhile for
members to note the following.
When AALF was formed, and in conjunction with the agreement regarding the sale of the Co-op’s assets to
AAFL there was a shareholders’ agreement also executed that set out the make-up of the AAFL Board and
stipulated two representatives of AAA (via its subsidiary Uniquely Alpaca Pty Limited (UAPL)). Not long
afterwards, this agreement was scrapped in favour of the appointment of as balanced a Board as could be
found. At the time, there had been a suggestion that AAA might not be able to provide three Directors. AAA and
AAFL agreed that it was a better approach to simply seek the best Board members available.
The first AAFL Board included two UAPL-appointed representatives - Bob Richardson and Kerry Dwyer - as
well as Paul Haslin representing the Co-op. At the AAFL AGM of 2004, Kerry Dwyer stepped down and was
replaced by John Fisher, a NSW alpaca breeder. At this meeting, Ian Winlaw was appointed Chair and Mike
Talbot Managing Director.
So, while there is no “direct appointment” of UAPL nominees to the AAFL Board, the AAA retains 42%
ownership and, directly or indirectly, still exerts a major influence. If AAA ever felt its interests were not being
adequately represented, it would have the capacity to change its representatives.
There is currently a vacancy on the AAFL Board, and anyone interested in being appointed, might indicate that
interest to Ian Winlaw.
One AAFL Director has commented to me: “While there is no necessity to hold AAFL shares, most Board
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