It's been a rough week for the AGL Energy Limited (ASX: AGL) share price.
Its struggles came amid expectations the company's upcoming annual general meeting (AGM) – to be held on 15 November – could evolve into a showdown between it and its major shareholder.
The AGL board, headed by chair Patricia McKenzie, has recommended shareholders appoint just one of the four potential directors nominated by Atlassian Corporation (NASDAQ: TEAM) billionaire Mike Cannon-Brookes.
The AGL share price is $6.85 at the time of writing. That's 2.09% higher than its previous close but 3.65% lower than it was at last Friday's close.
For comparison, the S&P/ASX 200 Index (ASX: XJO) is up 1.9% today and largely flat week-on-week. The energy retailer's home sector, the S&P/ASX 200 Utilities Index (ASX: XUJ), has also dumped 2.6% in that time.
Let's take a look at what might've weighed on the 185-year-old company's shares this week.
AGL share price tumbles amid AGM latest
A last-minute turn-around from the AGL share price hasn't been enough to claw back its losses. The stock tumbled earlier this week as what could be a battle between the AGL board and Cannon-Brookes' Grok Ventures appeared to heat up.
McKenzie appeared at the Australian Financial Review's (AFR's) Energy & Climate Summit on Monday with a clear message, the masthead reported:
We have to continue to have an independent board that represents 100% of the shareholders, and 88% of those are not Grok.
AGL chair Patricia McKenzie, courtesy of the AFR.
The billionaire's investment vehicle previously nominated four candidates for the company's board. Of those, the company recommends shareholders vote to elect one; former Tesla Inc (NASDAQ: TSLA) director Mark Twidell.
Meanwhile, it recommends investors vote against the appointment of Dr Kerry Schott, John Pollaers, and Christine Holman.
"It's a crucial vote coming up for the composition of the board to ensure that we have an independent board that is going to take that approach moving forward," McKenzie reportedly said.
Grok responded after the board rebuffed the majority of its candidates on Friday.
It said Schott, Pollaers, Holman, and Twidell have no alignment with Grok. That is, other than their agreement that the energy transition needs to occur quickly with AGL among its leaders. The venture continued:
It's yet another poor decision that doesn't seem to be rooted in logical business decisions and certainly ignores the threats and opportunities facing AGL.
Grok will be engaging directly with AGL's 150,000 shareholders in the lead up to the AGM to explain the merits of looking to fresh faces to provide a broader mix of skills and experience – as well as additional capabilities to undertake the monumental amount of work required by the board.
McKenzie reportedly told the submit the company will also be approaching shareholders and proxy advisors ahead of the meeting.
History repeating?
Last Friday, McKenzie labelled Grok's nomination of four candidates "unusual" for a non-controlling shareholder.
The venture put together an 11.28% stake in the company earlier this year. It used that stake to steer its successful campaign against AGL's planned demerger.
Those invested in AGL shares will likely remember the price the company paid for the scrapped split. It came to the tune of $125 million, a CEO, and a chair.
After this week's buzz, there's little doubt the focus will be on AGL – and its share price – next month.
