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Business
Marion Rae

AGL to campaign on 'crucial' board vote

Activist shareholder Mike Cannon-Brookes has made four nominations for election to the AGL board. (Dan Himbrechts/AAP PHOTOS) (AAP)

Australia's biggest electricity generator AGL Energy is standing firm as activist shareholder Mike Cannon-Brookes campaigns for a board overhaul.

AGL chair Patricia McKenzie told a business summit on Monday, "we'll also be talking to our shareholders."

"It's a crucial vote coming up for the composition of the board," she said.

The tech billionaire's Grok Ventures investment firm has made four nominations for election to the board: former energy regulator Kerry Schott, sustainability expert Christine Holman, Tesla's Mark Twidell and experienced board chair John Pollaers.

AGL has endorsed Mr Twidell as a suitable candidate for the board, ahead of a shareholder vote next month, but rejected a greater level of influence on the board.

"We're quite prepared to stand behind that recommendation," Ms McKenzie told the AFR Energy and Climate Summit.

"We have to continue to have an independent board of directors that represents 100 per cent of the shareholders, and 88 per cent of those are not Grok."

She said AGL would like "clarity" on the long-term plans Mr Cannon-Brookes has for his $650 million stake in the publicly listed company, after his failed buyout attempt this year.

He scuppered the energy giant's planned demerger, which would have created a power retailer and hived off ageing coal-fired operations that would have operated for longer.

Ms McKenzie said AGL's recently released strategic plan weighed up climate change, energy affordability, reliability for energy customers and returns for shareholders.

Much has changed in the past 12 months, including a global energy shock, a new federal government with new targets providing investment certainty, and state governments aiming for a quicker switch to renewables, she said.

As Australia's largest emitter, AGL has an opportunity to make the largest contribution to decarbonisation, she said.

Readying for another showdown at the annual general meeting next month, Grok has pledged to continue to push the nominations of Dr Pollaers, Dr Schott and Ms Holman as independent board members.

The vote will take place at the annual general meeting on November 15, at which the 150,000 shareholders will also vote on AGL's climate transition plan.

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