While Marlborough shareholder Murray Beech was to be commended for bringing forward another structural proposal, the board and the Shareholders’ Council were unanimous in rejecting his resolution.
If adopted, it would again expose the co-operative to redemption risk, reduce the earnings available for dividends and put its credit rating at risk.
“It would require remaining shareholders to fund those leaving the co-op.
“It would also be inconsistent with the Dairy Industry Restructuring Act.
“The proposal has some economically unsound elements and some that are illegal.
“A return to a nominal share value doesn’t reflect the capital that we as shareholders have contributed and those who have gone before us.
“This proposal at this time would be an unnecessary distraction.”
The resolution got a 12% yes vote.
