Ryan Stokes gets Re-elected for Seven Board

Submitted by Jim Thesiger on 10 November, 2009 - 05:07

Ryan Stokes, son of Kerry Stokes has survived from being thrown out of the Seven Network (SEV) board due to his father’s dominant position in the company. Kerry Stokes is the executive chairman of the company and is currently holding 92.8 million shares there. Ryan Stokes managed to get re-elected in the board by securing 70 percent of the proxy votes. However, his father’s huge share in the company is the major factor that helped Mr. Stokes to remain in the Seven board. Mr. Ryan Stokes is also one of the two representatives of Seven who is working with the Consolidated Media Board.

Kerry Stokes has claimed that the company has passed through a tough 12 month period and now in a better position. Mr. Stokes stated that the bank guarantee and federal stimulus introduced by the federal government have taken Australia to a “unique position” and the economy is currently rebounding after the worldwide recession. Mr. Stokes made these remarks while attending the annual general meeting with the shareholders in Sydney. The Seven executive chairman also mentioned that the demand of advertising is expected to increase due to the improved financial condition. The advertising industry went through a difficult time in last 12 months due to the recession. While talking about the raise in interest rates, the Seven executive chairman said, the economic outcome which exceeded the expectations has motivated the Reserve Bank of Australia to increase the interest rate.

Seven spent about $250 million in last July which soared its stake in the company. It is to be mentioned that Seven suffered a massive 91 percent drop in its profit which was reduced to $12.5 million as it faced impairment charges against listed equity portfolio. It is to be mentioned that Seven Media Group owns the online assets, magazine and broadcast TV of the company along with stakes in Consolidated Media Holdings and West Australian Newspapers Holdings. Seven shares closed for $6.40 in the stock exchange last night.