Shareholders of troubled Adelaide chemical business Penrice have voted to retain its current leadership.
Today's extraordinary general meeting is believed to be the first time the Federal Government's two-strikes law on executive remuneration has been invoked.
Under the rule, a board must stand for re-election if more than 25 per cent of investors reject the pay deals for two years in a row.
The law was brought into effect by an amendment to the Corporations Act in July 2011.
Before the vote, the company's chairman, David Trebeck, admitted over-promising and under-delivering, but he denied claims that the board has been operating on spin rather than substance.
He also accused one of the company's major shareholders, London City Equities, of trying to infiltrate the board.
Mr Trebeck said that the three new candidates are essentially their representatives.
That resulted in a fiery exchange between the new candidates and David Trebeck, with the new candidates making it very clear that they did not agree with his perception of them, and that they were very much independent.
However, shareholders overwhelmingly voted to retain Mr Trebeck and Andrew Fletcher, with more than three-quarters of votes cast going in their favour.
Mr Trebeck says the result was "emphatic".
"A total of around 65 per cent of the company's shares have been voted - this has been no mean feat given the dispersed nature of the register and its predominantly retail investor focus," he said in a statement after the meeting.
"Of those [votes cast], approximately 75 to 80 per cent have voted for the re-election of Andrew Fletcher and myself, and against the election of the other candidates." Mike Carter was among the candidates challenging the leadership and says the result was "disappointing but overwhelming." "[The incumbents] certainly had the large shareholders voting with them.
I think it's a pity for the smaller shareholders," he said.
Penrice announced last week it will cease soda ash production at its Osborne plant and switch to distributing cheaper imports in July.
The compound is used to make glass and detergents and about 60 workers will lose their jobs if the decision to scrap production goes ahead.