Amazon has refused to say exactly when it plans to launch its new offer in Australia but country manager Rocco Braeuniger said on Monday it was "really, really, really" close, while suppliers believe it will be before the end of November.

"They should be opening in February or March," Mr Harvey said. "To get out there and open now shows how dumb they are – they will make so many mistakes if they do this.

"It makes no sense, it's just crazy. Every time they do something wrong guess who will do something about it – they are our No. 1 target," he said, adding that many of Harvey Norman's suppliers would not supply Amazon at all.

Capital management on the cards

Mr Harvey also indicated that Harvey Norman was keen to distribute about $586 million in franking credits on its balance sheet, either through a special dividend or higher dividend.

"We have to try to work out how to get rid of them," he said. "It's constantly on our minds. We will have to do some things about it but it's not easy as you know."

About 81.2 million shares representing 23.4 per cent of shares voted at the annual meeting were against the adoption of Harvey Norman's remuneration report – slightly below the 25 per cent required to trigger a first strike.

The Australian Shareholders Association, which accounted for about 65 million shares, voted against all resolutions, including the re-election of Mr Harvey, because of the lack of transparency in its accounts and the lack of independent directors on the board.


ASA monitor Alan Goldin told the AGM that Harvey Norman's accounts were more transparent than they had been in 2016, when the Australian Securities and Investments Commission intervened, but questions remained about loans to franchisees.

Mr Harvey dismissed the ASA's concerns, saying: "We just made a record profit and you want to get rid of people who made that profit."

Mr Harvey was comfortably re-elected, with only 15 per cent of shares voted against him. However, 28 per cent of shares were voted against the re-election of finance director Chris Mentis and 19.7 per cent against Graham Paton.

Corporate governance weighing on shares

Mr Harvey once again railed at the company's critics, saying Harvey Norman shares would be worth $6 instead of $4 if not for the negative commentary.

However, long-term shareholder Robert Talbot-Stern, a professor of ethics and corporate governance at Cambridge University and Wharton Business School at the University of Pennsylvania, said Harvey Norman shares were suffering because of the company's "blind spot" on corporate governance.

"This company is on the wrong side of history in terms of corporate governance," Professor Talbot-Stern told shareholders. "I submit the reason why your share price is $4 and not $6 is because of your board make up. The lack of an independent board is a negative symbol."

Chief executive Katie Page said that while Harvey Norman did not have many women on the board the company was leading the way in its support for women coming up through management ranks, women in sport and women's education.


"We are making sure we bring women through our business so you have greater participation in the future," Ms Page said.

Flagships a 'game-changer'

Ms Page also described Harvey Norman's flagship store strategy as a "game-changer", saying recently completed flagships were not only delivering strong sales growth but having a positive "halo effect" on nearby stores.

"It's just been amazing," Ms Page said, citing early sales from flagships in Auburn in Sydney's west, which is due to be completed in June, Singapore, Malaysia and Tullagh in Ireland.

"You can see that in the sales we announced [on Wednesday], the immediate effect we've had not just with that store but all our other stores as well, it's exceeding everything we could possibly have thought of."