Fonterra Capital Structure May Vote Cancelled!
05:46:12 PM - 2008-02-26
FONTERRA'S MAY VOTE CANCELLED - FOR CAPITAL STRUCTURE PROPOSAL! A poll conducted by Fonterra showed that 41% of those that responded would not support the co-operative's capital structure proposal, as well 25% were in the "uncertain" category and many would have voted against the global expansion strategy had the May vote gone ahead, the vote needed 75% support for the proposal to go ahead. The final vote would not have been until 2010. The proposal put to farmers provided for two votes but the first vote was "not critical". According to one former shareholder council deputy chairman, the proposal was not sufficiently well developed for shareholders to make a informed dicision, also said he was concerned the board considers that shareholders support the Fonterra Strategy of "investment behind borders" because he did not think the strategy and it's risks and rewards are well understood. Fonterra Chairman Henry van der Heyden. say the majority of farmers did not want a bar of it and we have got to start again.Whether this new attempt to engage shareholders will be any more successful remains to be seen, but the lack of farmers support for the idea may be such that no amount of time and money will get the results the board desires.Most of those who came out in opposition to the proposal were clear in their assessment of what it involved - a loss of farmer control in the co-operative. It has taken 7 years for farmers to start to reap the rewards, of Fonterra being formed and many will never be convinced that handing over part of the operation to outsider is the right think to do. A new round of meetings will be held next month to allay most of the fears that shareholders have expressed to them.
Post Comment | Read Comments (0)
|
MY BEAUTIFUL COUNTRY!
