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Shareholders slam AMP over corporate governan -

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Reporter: Sue Lannin

PETER CAVE: To finance now, and AMP has come under fire over its corporate governance standards at
its annual general meeting in Sydney.

Shareholders slammed the board for not forcing Meredith Hellicar, the disgraced former chairwoman
of James Hardie, to step down earlier. She resigned from the board last month after a landmark
court ruling that former James Hardie executives and directors lied about the ability of the
company to fund asbestos compensation.

The AMP board was also criticised for not making David Clarke, the former chief executive of the
collapsed Allco Finance Group, step down earlier. The company announced two weeks ago that Mr
Clarke would not be standing for re-election at the AGM.

Our finance reporter Sue Lannin, was at the meeting and she's joined me in the studio. Sue, what
were the main concerns of the shareholders?

SUE LANNIN: Well very much Peter, their concerns we're that Meredith Hellicar and David Clarke have
damaged AMP's reputation. Their view very much, in particular of the shareholder activists, was
that the company should have made them resign much earlier because of the embarrassment their other
corporate activities have brought to the company.

Here's shareholder activist, Stephen Mayne.

STEPHEN MAYNE: Well I was just amazed that the board thought it was okay for Meredith Hellicar to
have another three years on the board earning more than $400,000 a year. I mean, the major
political parties were refusing donations from James Hardie. There was the whole Jackson enquiry,
there was ASIC proceedings on foot.

And I would have though one of our biggest investors which is meant to tell everyone else how to
behave, would have just facilitated a quiet retirement for Meredith Hellicar and not put her up for
another three years and then have the embarrassment of her standing down because of the decision by
the courts.

SUE LANNIN: Has this harmed the AMP brand?

STEPHEN MAYNE: Well I think it should, and I personally can't see how the chairman can continue. I
mean if he thinks that's okay, then I don't think he's fit to be the chairman of the AMP.

It's in these sort of situations that a chairman must stand up, forget about board collegiality and
sticking with your colleagues and this sort of stuff, and protect the brand of the business and tap
them on the shoulders and say it's time to go.

PETER CAVE: Shareholder activist, Stephen Mayne.

What was the AMP's response?

SUE LANNIN: Well Peter, the company was steadfast, I think that's what you can say. The chairman,
Peter Mason, praised both Meredith Hellicar and David Clarke, he said that they were great
contributors.

He also said that AMP's focus was on AMP, not on the outside activities of its directors. He was
asked about succession planning, he said the process was in place, they're looking for new
directors over the next 12 months or so but they're not in a hurry.

Mr Mason also defended another board member, John Palmer, who has a number of directorships, and he
said both Meredith Hellicar and David Clarke would be missed.

PETER MASON: Meredith joined the board in 2003 when AMP was in turmoil as a result of its UK
exposures, she was part of a small board that saw through the demerger of AMP and she's been a
diligent and committed director.

David Clarke came to AMP in 2005 following a long career in the financial services industry
including extensive experience in very senior roles in both Westpac and MLC. His experience is
unique, and he brought insights which will be missed.

So we thank them both for their contribution to AMP, and we wish them well for the future.

PETER CAVE: AMP's chairman, Peter Mason. Was it all grumpiness and complaints?

SUE LANNIN: No, the company was actually talking about the economic circumstances, they've been
hard hit by the global financial crisis. They say 2009 has been a challenging year, 2010 will also
be difficult but they're able to adapt and they will continue to adapt to the difficult times.

PETER CAVE: Sue Lannin reporting.