Chairman of the company. As a quorum is present, is that right, Penny?
Yes.
I formally declare this meeting open. Unusually, I'll try and introduce my fellow directors. In Perth in front of you, we have Ian Testrow, obviously our Chief Executive Officer and Managing Director. Joining from Sydney is Keith Skinner, in Brisbane is Peter Kane, and he's attending his first Emeco AGM. We also have Peter Frank on the line all the way from the U.S. Sitting with Ian, we have two members of the management team, Thao Pham, who's our Chief Strategy Officer and Interim Chief Financial Officer, and Penny Young, Emeco's Company Secretary and General Counsel. Turning now to address the meeting formalities, given a number of board members are attending the meeting remotely.
In the event of any technical difficulties or interruptions, I'll ask Penny Young, who obviously is there with you, to take over as chair in my place. Moving on to my address, I'd like to start with Emeco's focus and dedication to its workforce, which has now grown to over 1,200 people. Navigating the evolving challenges of the COVID-19 pandemic this past year, we are very proud that we've had minimal impact to our business and customers, despite numerous lockdowns and state border closures, and most importantly, no COVID-19 cases amongst our workforce. Emeco's safety performance saw further improvement as we reduced the total recordable injury frequency rate to 2.1, down 28% from last year's 2.9. We're also pleased that the lost time injury frequency rate remained at zero for the fifth year in a row.
It's a truly remarkable effort and a great reflection upon all our employees, and having been in the mining industry for over 40 years, that is a particularly impressive performance by all our employees. Our continued investment in people extends, however, well beyond safety. The company rolled out Project Align in FY 2021, focusing on attracting, retaining, and developing a valuable workforce in a very tight labor market. This involved the tremendous engagement of our entire national workforce, defining and establishing our shared vision and values. Project Align also guides better definition of our community identity, and hence we established a Community Engagement Committee, chaired by John Worsfold, our new Manager of People and Culture, to engage with causes close and dear to our people.
We're also aware of the need to build a diverse workforce and board, which is an ongoing focus in the short term, and we're also looking at building on Emeco's strong female presence in the management level by also adding greater diversity to our board in the coming year. Importantly, Emeco has also commenced undertaking a detailed sustainability assessment in the coming year. This will scope the critical ESG matters that are material to our business and stakeholders and will include establishing ESG targets, including a pathway to decarbonization. The board looks forward to presenting our ESG assessment in the coming year. Emeco continued to execute upon its strategy of creating a more sustainable and resilient business in the past year, notwithstanding the challenges of COVID-19.
During the year, the company continued to rebalance its commodity exposure with a decision to move fleet from the East Coast to the West Coast to strategically capitalize on strong demand in gold and iron ore. Combined with the Pit N Portal acquisition, Emeco continues to embed itself in the customer's projects through our expanded value proposition. This supports the company's growing list of longer tenured projects, augmented by a better balanced commodity mix and an increasingly diverse customer base. These strategic achievements have ensured solid operational and financial performance was achieved in, as I said, challenging circumstances. In August last year, the board took decisive action to ensure Emeco's balance sheet was strong and able to withstand any further market gyrations. The rights issue and debt repayment significantly reduced our indebtedness and lowered our financing costs.
Obviously, the board thanks our shareholders for their support in this initiative. In June 2021, we were able to fully refinance the remaining U.S. notes with Emeco's inaugural debt issuance in the Australian bond market. This transaction materially reduced our cost of capital and further strengthened our balance sheet for the long-term success of the company. With our healthy balance sheet and leverage below our long-term target of 1x, the board approved its capital management policy in May 2021, resolving that between 25% to 40% of operating net profit after tax will be allocated to capital management initiatives. For the financial year 2021, and after a lengthy absence, the board was pleased to allocate AUD 11 million of funds under this new policy, representing a 35% payout ratio of second half operating NPAT.
The capital management allocation included a AUD 0.0125 fully franked dividend, the company's first since 2013, and an on-market share buyback, which we have now completed. With exceptional strategic achievements over recent years and the sound balance sheet and capital structure we now have, Emeco is focused on its next phase of growth. The board is supporting the long-term vision by transitioning management's long-term incentives to target earnings per share on growth over the years ahead as we work to further align management incentives to shareholder interests. In my time as chairman of Emeco, I firmly believe the company is on the best footing it has been, both financially and operationally. The board and I look forward to ongoing success and value creation for our shareholders. Thank you, very much.
I'd now like to invite Ian Testrow, our Managing Director, to deliver his address.
Everyone. Thank you very much. This morning I'll provide a summary of FY 2021, followed by an operational update and outlook. We'll finish covering Emeco's strategy going forward. Emeco's workforce has now expanded to over 1,200 people nationwide, and I'm very pleased that our lost time injury frequency rate remained for the fifth straight year in FY 2021. Our total recordable injury frequency rate has also decreased 28% to 2.1 in FY 2021, down from 2.9 in FY 2020. The continued reduction in recordable injuries is a pleasing outcome as our target of zero harm in the workplace remains. We place enormous value in our people and continue to invest in our greatest resource. Emeco has worked hard to engage and support our workforce. This has been anchored by the company's Project Align, which we established and rolled out in FY 2021.
The project has been spearheaded by People and Culture Manager, John Worsfold, and is targeting employee engagement, retention, and focusing on long-term employee development to drive shared success. The project has also shaped our organizational values defined by the whole Emeco team and identified opportunities to develop a greater community presence driven by our people and their community groups. We have more targeted involvement in our local communities, and our recently established Community Engagement Committee will steer the direction of our community involvement. On sustainability more broadly, I look forward to sustainability and ESG targets with a roadmap to decarbonization later in FY 2022. I'm pleased to report another year of strong profitability in FY 2022, not only in FY 2020, notwithstanding the challenges caused by COVID-19 and trade tensions with China which impacted coal prices.
Our ability to respond and adapt to changing conditions saw us redeploy idle equipment to new projects in Western Australia, which was both opportunities and all sectors. Our Pit N Portal business, which we acquired in 2020, achieved success as we commenced work on a number of exciting projects, including Mincor Resources' Kambalda Nickel Operations. Our Force workshop business had enough improvements and growth in work for new customers. Our operating EBITDA was also resilient, AUD 77 million as we started the recapitalization process. Importantly, our return on capital of 17% remained well above our cost of capital. FY 2021 saw transformational improvement in the company's capital structure. Our balance sheet was strengthened significantly in the year, thanks to our shareholders who supported an equity raise in August of 2021.
This transaction reshaped our business to provide strong capital and increased flexibility to navigate through FY 2021. In July 2021, we completed a refinancing of our residual U.S. notes, which will significantly reduce our cost of capital. Our ongoing interest costs will be 64% lower than in FY 2020, a reduction of AUD 28 million per year. We now have a simpler capital structure, more representative of the health of the business, and we've leverage below our long-term target of 1x. We can consistently allocate capital generated from our strong machine returns to our shareholders. The board announced its capital management policy in May, and Emeco declared its first dividend since 2013. We're allocating a total of AUD 1 million to capital management, representing 33% of second half 2021 operating NPAT.
Building a strong and healthy balance sheet has been a key strategic objective during my time as the Managing Director or CEO. One of the Board Emeco team, we're all proud to realize this objective. Our leverage target, capital management policy, and strict return hurdles will ensure prudent capital allocation is maintained going forward. Despite the challenges we encountered in FY 2021, we remain focused on executing on our strategic objectives. I've mentioned the capital structure improvements, healthy balance sheet, and how this has now allowed the Board to implement a capital management policy of 25% to 40% of operating NPAT. We've also delivered on our operational initiatives. Our focus on delivering the lowest cost, highest quality equipment and service is supported by continual improvement in asset management, including our capability in condition monitoring, predictive maintenance, reliability engineering, and data analytics.
This crucial function is performed in our asset hub in Brisbane, and we continue to invest in resources and technology to support the team. We identified and acquired a highly accretive package of underground mining assets, increased our internal use of Force equipment rebuilds by 15%, and expanded our workshop capabilities to enhance our strategic in this space. We continued to widen our value proposition with eight new maintain rental projects, and we secured and commenced delivering several new services project wins within Pit N Portal. We also commenced our first surface mining project running our unique EOS technology. Importantly, this growth has allowed us to further balance and diversify our portfolio both geographically and by commodity exposure.
just reduced our coal exposure to 38% of revenue, and we see further growth in nickel and copper projects, further diversifying our revenue while we maintain our strong relationship with our coal customers. We capitalized on changing conditions and opportunities by transferring a number of assets to our commodity agnostic fleet from Queensland to W.A. to support strong demand. This increased our service levels. We've seen our average contract tenure increase to 2.5 years. Emeco is now a robust, resilient and sustainable business, and I'm extremely proud of how we navigated through the challenges safely and profitably. I'm excited the business is well positioned to grow into the future. Looking ahead, I'm pleased to report that the business is performing in line with the expectations, and we expect first half 2022 operating EBITDA to be in the range of AUD 120 million to AUD 125 million.
I can also confirm that we're comfortable with the full year outlook for FY 2022 that we issued at the full year results. Our Eastern region rental business has been steady this first half, with earnings in first half 2022 expected to be in line with second half 2021. While coal prices have increased significantly in 2021, we don't yet see this translating to increased export volumes, evident in the coal data we track for major coal projects in Queensland and New South Wales, where data shows volumes remain below average. Customers remain cautious given the volatility in prices and the recent Chinese trade tensions. We do, however, have a positive outlook into the second half 2022 in the East as customers regain confidence in the market. A strong pipeline of projects supports our expected increase in utilization in the second half as we initially guided.
We expect further growth in hard rock and metals revenues in the East, which further diversifies our coal revenue towards 30% of group revenue. Our Western region has been strong to date, supported by its larger fleet from the FY 2021 asset transfers working for the full first half. Earnings growth has been good. However, labor tightness has had some impact on customer utilization of our equipment. We expect earnings growth to continue into the second half as we see continued improvement in utilization, driven by the deployment of equipment from construction projects to double shift mining projects. Our expectation is that rental utilization levels will build across the remainder of FY 2022, and we expect to exit this financial year approaching utilization rates in line with FY 2020 levels.
Rental rates are generally steady, and we see current opportunities to implement pricing expansion in the Western region with improvement in Eastern region rates expected in the following months once utilization levels increase. Activity in our Pit N Portal business has been building. Pit N Portal's mining services operations have been most acutely impacted by labor tightness in WA. However, we've been working closely with all of our customers to provide solutions which continue to support our projects. With PNP's new and existing projects ramping up, we're seeing other opportunities in the pipeline to achieve strong growth in FY 2022 weighted to the second half. We're seeing softer margins in PNP in the first half, and given this is a high revenue business, this will dilute the group's margin somewhat. Part of this was expected due to the project ramp up profiles.
However, labor tightness in Western Australia is also a factor. Continuing border closures have made the WA labor market extremely tight and will remain so in the short term. We're working with our customers across the business to manage this issue, and at this stage we do not anticipate material impact on any of our rental operations. Our Force workshop business continues to be strong. We recently completed an acquisition of a line boring business, Borex, which we're now integrating into our operations. Force continues to support our rental operations through rebuilding of our assets in a timely and cost effective manner and supporting customer timeframes. This team has also secured further contract revenue to deliver rebuilds for external customers in Western Australia.
Overall, our outlook remains positive for the period ahead, and we see strong growth in the second half 2022, with that momentum carrying forward into FY 2021. We announced an asset replacement program at our full year result. To date, we've been able to acquire a number of targeted asset classes with approximately half of the annual program completed, and the assets have all been put to work. Our Force workshops remains crucial in rebuilding these assets, and we're currently tracking in line with budget as we source mid-life equipment. Moving on to strategy. Now, looking back over the past six years ago, my time as CEO has largely been defined by first ensuring Emeco's survival and rebuilding the balance sheet. Through the years, with the support of our shareholders, we've successfully acquired and integrated five businesses into the group.
These value accretive transactions contributed to our scale, diversification and growth, and all have delivered strong returns on capital. Force and Pit N Portal in particular were transformational for our business. Force provides us with a key strategic differentiator, the ability to fully rebuild equipment and components in-house. This capability underpins our competitive advantage on both cost and quality, and has contributed to the building of our strong return on capital over recent years. Force also provides this service to external customers as a touchpoint with industry and diversifies this into service-based capital-light revenue and earnings. Pit N Portal added the largest hard rock underground rental business in Australia to the group. This equipment is highly sought after and generates strong returns on capital. In addition to equipment rental, Pit N Portal provides technical services, infrastructure, and people capability as an underground mining services provider.
We've opened up a new segment of mining customers, which provides diversification from capital intensive rental operations and a broader commodity and geographic mix. There are excellent growth opportunities in the underground segment, particularly in the demand for raw materials to support the strong growth expected in battery demand. Mining services contracts are long tenure projects and provide exciting opportunities for partnering between the Emeco rental business and the Pit N Portal customer base. Today, Emeco is a more diverse business with a growing number of customers across the country and increasingly diversified commodity exposure with a lower concentration of asset and revenue reliance in coal. Our level of service has significantly increased, supported by a workforce of over 1,200 skilled people who are embedded at customer sites.
This too has increased our own, you know, average contract tenure to 2.5 years, up from less than six months when we started on this journey. The board and management team is pleased with where we are today, and we're achieving, and we are challenging ourselves to deliver growth from the platform we now have in place. We have a strong and resilient business which generates excellent free cash, a healthy balance sheet and a capital policy in place. We have a great team who has the energy to seek out profitable and accretive growth opportunities to drive shareholder returns. We will focus on future investments on accelerating our strategic goals as we position Emeco as a leading provider of diversified mining equipment and services to both underground and open cut projects.
We will consider opportunities which align to our capabilities and expand our service offering. Force and Pit N Portal are great examples of how widening the value proposition can reshape the business and strategically position Emeco for growth while providing our customers with additional value. We will target expanding our core business relationships and exposures to projects in the fast-growing commodities, and we will align our fleet capabilities to service this expected long-term opportunity. We will expand EOS and we'll digitize the business. We see our future investments can be both organic and inorganic. An example of organic growth is the package of underground equipment that we purchased in April this year. We recently completed a small Borex acquisition, another vertical integration which expands our core capability.
Our long-term strategy is to build a sustainable shareholder value, and we'll always ensure we are disciplined and meet our strict return hurdles, and we'll align our fleet and capability to service this long-term demand opportunity. In closing, I'd like to thank shareholders, our new domestic debt holders, customers, and suppliers for their ongoing support. I'd also like to thank my fellow directors and the entire Emeco team for the continuous hard work delivering for our customers. We're excited for what lies ahead and look forward to continued growth and success for our shareholders.
Thank you, Ian. We now turn to the formal part of today's meeting. Ladies and gentlemen, the notice of meeting was sent to shareholders on the 18th of October. Copies are available at the front registration desk, and I propose that the notice of annual general meeting be taken as read. Thank you. I'd like to note a couple of matters relating to the meeting procedure. Obviously, this is a meeting of the shareholders of Emeco. As such, only shareholders, their appointed proxies, or their corporate reps are entitled to make comments, ask questions, or vote. All other attendees are of course welcome as observers. If you are a voting shareholder, you'll have received a yellow voting card. You're entitled to vote and speak at this meeting.
If there are any persons who are entitled to vote who have not yet received their card, please see a rep from our share registry, Link Market Services, back of the room. If you're a non-voting joint shareholder or shareholder who has already voted by proxy prior to the meeting, you will receive a blue non-voting card. You're entitled to speak at this meeting but not vote. Visitors holding a red card are not eligible to speak or vote at this meeting. Following consideration of the 2021 financial report, I'll give shareholders the opportunity to ask general questions of the board or our independent auditor, Deloitte, represented here today by Mr. David Newman. Anyone who has a general question or comment for the board or the auditor should raise it at this time.
In addition, you'll be given the opportunity to make comments or ask questions in relation to each of the Resolutions as those Resolutions are considered by this meeting. If you have a question when a Resolution is read, then please either approach the microphone situated at the back on the center aisle, or make yourself known to one of our team members. After discussion is complete and before a vote is taken, the proxy results will be shown on the screen. These figures are at the closing time, which was 9:30 A.M. Perth time on Tuesday the 16h of November. I can confirm I intend to vote the open proxy votes I hold as a nominator proxy or proxy by default for shareholders in favor of all the Resolutions.
Please note that voting on each of the Resolutions will be conducted by poll, and as I've said, only those with yellow cards are entitled to vote. On the yellow card, you will find a series of boxes for voting. During the course of the meeting, you will be asked to indicate on your card how you wish to vote by ticking or marking the appropriate square. You must mark either the for or against box for the vote to count. You may cast some of your votes for the Resolution and some against by writing the applicable number of votes in each box. The total votes cast must not exceed, obviously, your voting entitlement. If you are a proxy holder, a summary of the votes you may cast has been provided with the yellow voting card.
If you only have directed votes, you need only submit the voting card. Votes at your discretion or open votes are shown in the column marked Votes Open on your proxy summary and can be cast at your discretion by either marking the for or against box. At the end of the meeting, once you have finished marking your card for all Resolutions, you'll be asked to place your card in one of the ballot boxes circulating the room. As I'm not physically present, Penny will deposit my voting card in the ballot box on my other behalf. The meeting will be closed following collection of the cards, and the results of each poll will be announced to the ASX later today. If there are any aspects regarding the voting which you are uncertain, please do not hesitate to ask the Link staff.
I'll now move to the business of the meeting. First item is the consideration of reports. The 2021 annual report contains the 2021 directors' report, financial report, and the independent auditors' report. A copy of this report is available at the desk. The financial statements have been approved by directors and audited by external auditor, Deloitte. As required by Section 317 of the Corporations Act, I now table the directors' report, the financial report, and the independent auditors' report for the financial year ended June 30th, 2021. Having done that, I'd now like to take any general questions or comments about these financial reports or any other general matters. Obviously, Mr. Newman is also available to answer any specific questions you may have.
Shareholders, please raise your yellow card or blue card if you have a general comment or question. Penny, do I ask you at this stage whether there's been any sub-questions submitted prior to the meeting?
No questions, Mr. Chairman.
Thank you. Given that is all we need to do with respect to the consideration reports, I shall now move on to the other formal items of business.
Mr. Chairman, there's a question in the room.
Oh.
Hello, can you hear me?
Yeah, very well.
It's about Resolution four and Resolutions three.
Can we wait till those Resolutions, and then you ask the questions at that time, please? Is that okay?
Yeah, that's good.
Appreciate it. Thank you. Okay, the first Resolution is the Resolution in which I'm seeking re-election as a director, and obviously I've got a conflict here. Ian, if I could ask you to chair this first Resolution.
Thank you, Mr. Chairman. Resolution one is concerning the re-election of Mr. Peter Richards as Director of the company under the company's constitution and the ASX listing rules. Peter was last re-elected as appointed as a Non-Executive Director at the 2018 AGM, and accordingly retires in rotation at this AGM. Mr. Richards has over 40 years of international business experience with global and regional companies. Peter has been on the board of Emeco since 2010 and has been chairman since 2016. Peter is also currently a Non-Executive Director of ELMO Software Limited, GrainCorp, and Thorney Technologies Ltd. The directors, with Mr. Richards abstaining, unanimously recommend that shareholders vote in favor of Resolution one. Are there any questions? If there is no further discussions, I now put Resolution one to the meeting. That Mr.
Peter Richards, who retires as director by rotation in accordance with the constitution and being eligible for re-election, is elected as a Director. The proxy results for this item of business are as shown on the screen. Shareholders with the yellow card, please indicate on your card how you wish to vote by ticking or marking the appropriate square for Resolution one. I now hand back to the chair, to Mr. Richards, for the remainder of the meeting.
Thanks, Ian. Much appreciated. I'm very pleased to now present Resolution two, which is concerning the election of Mr. Peter Kane as a Director of the company under our constitution and the ASX listing rules. Peter was appointed as a Director on the 7th of December last year to fill a casual vacancy, and accordingly retires at this AGM, and even more importantly, offers himself for re-election. Peter is a Mining Engineer with over 30 years' experience in the industry throughout Australia, New Zealand and Mongolia. Peter is currently the Chief Operating Officer of the QCoal Group, where he's responsible for all site operations. Prior to QCoal, Peter held roles as the Chief Executive Officer at Cockatoo, Group Managing Director at Guildford Coal, Chief Executive Officer at Aston Resources, CEO at Boardwalk Resources, Executive General Manager Projects with Whitehaven Coal, and Chief Operating Officer with Macarthur Coal.
Peter's early career included 10 years for Leighton in various roles and 10 years with BHP. Obviously, the directors, with Mr. Kane abstaining, unanimously recommend that shareholders vote in favor of this Resolution two. Are there any questions?
None in the room, Mr. Chairman.
If there are no further discussions, I now put Resolution two to the meeting, which is that Mr. Peter Kane, who was appointed as a director since the last AGM of the company and retires as a Director in accordance with the constitution, and being eligible, is elected as a Director. The proxies are very, very heavily in favor, as shown on the screen. Shareholders with a yellow card, please indicate on your card how you wish to vote by marking the appropriate square. Thank you very much. Resolution three, in which we will have a question, is the adoption of the remuneration report. Resolution three is an advisory Resolution regarding the adoption of the 2021 Remuneration Report. This report is set out at pages 23 to 38 in the annual report and sets information regarding Emeco's remuneration policies and practices.
This Resolution is advisory only and does not bind the directors. However, the board will take the outcome of the vote into consideration when reviewing the remuneration practices and policies of the company in the future. The directors recommend that the shareholders vote in favor of this Resolution. We're now happy to take your first question, sir.
Thank you. Bernard Kent, long-term shareholder. My question is probably to the chairman regarding earnings per share. I noted in the press you said that remuneration would now be tied to earnings per share. I take it it hasn't been. In the accounts on page 14. In 2020 was nearly AUD 0.20 per share. This year that's just gone, it's fallen to AUD 0.04 per share. Which I think fares. My question is going, if you now earnings going forward, gonna tie it to the annual back to 2020 figures. We had AUD 0.20 earnings.
Well, thanks very much. There were two parts to the question. In terms of the move to the EPS indicator, that forms part of the LTI considerations. In terms of the STI considerations, earnings represent certainly for the senior management around 70% of their STI consideration. Earnings have always been very much of a focus. Given that we've had quite considerable activities in addressing the balance sheet, earnings per share is more reflective of not just budget EBIT and EBITDA results, but also the capital structure of the company, number of shares on issue. The target that will be in place for the coming year is based on an aggressive budget consideration, so it is not reflective of the lower AUD 0.04 per share. I was just trying to.
Was that on page 14, you indicated?
That's correct.
Yeah. It'll be more reflective of the prior year than the next immediate past year. Hopefully that addresses your concerns in that regard.
Fine. When you did the restructure, how long do you think it will take to get back to 2020 levels regarding earnings per share?
I'd have to do my calculations. Where's my Chief Financial Officer? It shouldn't be too long, to tell you the truth. If I say exactly what it is, then it might give away what our internal expectations are on budgets, which might be a disclosure issue. Certainly, we intend to get that back to the prior levels very quickly.
Back-of-the-envelope numbers is two to three years.
Yeah. Given the fact that we did do the rights issue and there are more shares on issue, which normally would adjust, I think, in these tables. David, would that be correct?
Yes.
I think it's fair to say, Mr. Chairman, that the decision we made to do the equity raise to recapitalize has set this business up for a sustained period of being a healthier, resilient business. I think that's a really important consideration.
I think that was very much reflected in the KPIs we set management in the last two LTI assessment years. Where we were very much focused on that commodity mix, tenure of contracts, the expansion of the value proposition we offer customers, et cetera. I think having achieved to a greater extent the resilience that we were looking for, we're now moving purely for this earnings per share growth, which hopefully will align with our shareholders' interests. Thanks, Ian. You okay with the response?
Thank you. With that, yeah, I understand those considerations.
Okay. Thank you very much for your question. We'll come back to the next question in the next Resolution. Okay. There's no further discussion. I'll put this Resolution three to the meeting that the remuneration report for the financial year ended 30th of June 2021 be adopted. The proxies are as per on the screen now. Shareholders with a yellow card, please indicate on your card how you wish to vote. Okay. Moving to Resolution four, which is approval of rights under the Emeco long-term incentive plan for the 2020 financial year to our Managing Director and CEO, Mr. Ian Testrow. This Resolution seeks shareholder approval for the issue of 176,404 rights to Emeco shares to Ian under the terms of the Emeco long-term incentive plan. This proposed issue relates to year two of the long LTI program, component of Ian's remuneration for the 2020 financial year.
ASX Listing Rule 10.14 requires shareholder approval be obtained prior to the issue of these securities under the employee incentive scheme to a director. Accordingly, the company is seeking approval for the issue of these rights to Mr. Testrow under ASX Listing Rule 10.14. Shareholder approval is also being sought for the potential future retirement benefit under sections 200B and 200E of the Corporations Act. Further details regarding the plan and its operation are set out in the remuneration report. With Ian abstaining, the directors recommend that the shareholders vote in favor of this Resolution. Your question. Oh, are we good?
No questions, Mr. Chairman.
Oh, sorry. Cheers. Thank you. If there's no further discussion, I now put Resolution four to the meeting, which is that for the purposes of ASX Listing Rule 10.14, sections 200B and 200E of the Corporations Act and all other purposes, approval is given for the issue of 176,404 rights to Ian pursuant to the terms of the Emeco long-term incentive plan for the 2020 financial year, and as detailed in the explanatory memorandum, which accompanies and forms part of the notice of the Annual General Meeting. The proxies are shown on the board now, and again, shareholders, please tick your yellow box. The fifth Resolution is a similar Resolution to four, which is the approval of issue of rights under the LTI incentive program for the 2021 financial year to Ian.
As such, Resolution four seeks shareholder approval for the issue of 377,020 rights to fully paid shares to Ian under the terms of the Emeco long-term incentive plan. This proposed issue relates to year one of the LTI component of Ian's remuneration for the 2021 financial year. As noted in respect of the last Resolution, the listing rules require shareholder approval. Accordingly, approval is being sought under ASX Listing Rule 10.14, and obviously approval also for the potential future retirement benefit under Section 200B and 200E of the Corporations Act. Again, with Ian abstaining, directors are recommending that the shareholders vote in favor of this Resolution. Are there any questions in relation to this Resolution? Thank you. If there's no further discussion, I'll now put Resolution four. Resolution four, I think, is Resolution five.
Which is for the purposes of ASX Listing Rule 10.14, sections 200B and 200E of the Corporations Act, and for all other purposes, approval is given for the issue of 377,020 rights to Ian pursuant to the terms of the Emeco long-term incentive plan for the 2021 financial year, and as described in the explanatory memorandum, which accompanies and forms part of the notice of AGM. Proxies are again in front of you. Shareholders, if you could again indicate on the card, on the yellow card, how you wish to vote. That ends the completion of the votes for the five Resolutions. Just as a reminder, if you could mark the for or against box on your yellow card.
For those of you who are proxy holders, you will have received a summary of the votes to which you're entitled along with a yellow voting card. If you only have directed votes, you need to do nothing other than submit the voting card. Votes at your discretion or open votes are shown in the column titled Votes Open and can be cast at your discretion. As previously indicated, I intend to vote all open proxies I hold as a nominated proxy or proxy by default for shareholders in favor of all Resolutions. As I said before, Link Market Services has been appointed by us as scrutineers for the poll. If I can now request that all yellow cards be collected by Link. Was that done, Penny?
Yes, Mr. Chairman.
Did you cast my votes?
Yes, Mr. Chairman.
Thank you. I can now declare the poll for each of the Resolutions is closed. Ladies and gentlemen, thank you for your attendance today and the questions posed. As I said, the outcome of each of these Resolutions will be released to the ASX later on today. As there's no further business. Is there one item of further business? The mic's coming.
Thank you. Are we gonna have general questions?
Yeah, I'm happy to close the meeting and then allow general questions. Ian, you up for that?
Yeah, man. Yeah.
Thank you. Okay. There's no further formal business. I do declare the meeting of Emeco Holdings closed. Whether my fellow directors wish to depart, I'll leave that to you, but I'll stay on with you, Ian, and help with any general questions. Again, thank you very much for your attendance. Deloitte, thank you. Link, thank you. To the staff assisting, Penny, Karen, and Sam, and Thao, thank you very much for your efforts as well.