Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Judgment Sought Proper Asset Sale Approval Process

MEDIA RELEASE

Fletcher Challenge Forests Seeks Judgment
On Proper Asset Sale Approval Process


Auckland, 24 October 2003 – Fletcher Challenge Forests Limited (FCF) applied to the High Court today for a declaratory judgment as to whether an ordinary or special resolution will be required to be put to its shareholders in the event its Directors recommend a sale of forest assets owned by its subsidiary companies.

The NZX has advised the Company that the Listing Rules require an ordinary resolution, unless a special resolution is required by the Companies Act. On the basis of advice received from two independent legal advisors on this issue, FCF has concluded that under the Companies Act the proposed transaction is required to be approved only by an ordinary resolution of FCF’s shareholders. It has also concluded that it would be improper for the Board to unilaterally impose the higher threshold of a special resolution when that is not required by law. To do so would infringe the rights of shareholders who support the transaction to have it approved by ordinary resolution.

The Company is aware that some of its shareholders are of the view that the any forest sale proposal should be put to them as a special resolution, requiring a 75% majority for approval. It is also aware that other shareholders hold the contrary view that only an ordinary resolution is required. Given that the Courts have not considered the application of the relevant statutory provision to date, and because of the size of the proposed transaction and the existence of conflicting views held by shareholders, FCF considers that the appropriate path forward is for it to seek a declaratory judgement from the High Court as to which shareholder resolution threshold is required.

The court process for a declaratory judgement requires submissions on both points of view to be presented to the Court. FCF will present its case to the Court based on the legal advice it has received. It has, however, also applied for an order appointing an independent Queen’s Counsel to assist the Court and represent the interests of FCF’s shareholders. This Counsel will present any contrary argument to the Court in response to the submissions made by FCF.

FCF is making the application to ensure that there is clarity for all parties involved as to the resolution to be put to shareholders, well before the Company’s shareholders are required to make any decision on a proposal for the sale of forest assets owned by FCF subsidiary companies.

Ends

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Frog Recruitment: Kiwi Workers Reluctant To Make Business Trips Across The Ditch Despite Trans-Tasman Bubble Opening

When the trans-Tasman travel bubble opens today, many Kiwi companies won't be rushing to buy an air ticket, reluctant to cross the ditch to do business. The latest survey conducted by leading recruitment agency, Frog Recruitment of nearly 1,000 New Zealand ... More>>

Tourism: Employers Welcome Back Working Holidaymakers

Tourism businesses gearing up for the return of Australian visitors from next week will be relieved to learn that they will also have access to an offshore pool of much-needed job candidates, Tourism Industry Aotearoa says. Tourism employers around ... More>>

Commerce Commission: Latest Broadband Report Confirms Improved Performance Of Premium Fibre Plans

The latest report from the Commerce Commission’s Measuring Broadband New Zealand programme shows that the performance of Fibre Max plans has improved substantially. This follows a collaboration between the Commission, its independent testing partner, ... More>>

Air New Zealand: Capital Raise Deferred

Air New Zealand has decided to defer its planned capital raise to later in 2021 allowing more time to assess the impacts of recent developments on the airline’s path to recovery. 'We’ve seen some clearing of COVID-19 clouds recently, with ... More>>


Stats NZ: New Report Shows Impact Of Demands On Land In New Zealand

A new environmental report released today by the Ministry for the Environment and Stats NZ, presents new data on New Zealand’s land cover, soil quality, and land fragmentation. The land cover data in the report, Our land 2021 , provides the most ... More>>

ALSO:

Stats NZ: March Card Spending Rebounds Despite COVID

There was a lift in retail card spending in March following a fall in the lockdown-disrupted February month, Stats NZ said today. Seasonally adjusted retail card spending rose by $53 million (0.9 percent), compared with February 2021. Visit our website to read ... More>>

PwC: Outcome Of Review Into Air New Zealand Gas Turbines Business

Air New Zealand has received the report into its Gas Turbines business from independent external advisers PwC. Air New Zealand Chairman Dame Therese Walsh says the report identified a range of effective controls in the Gas Turbines revenue contracting ... More>>