LIC Share Vote Welcomed

LIC Share Vote Welcomed

Dairy Farmers of New Zealand (DFNZ) congratulates Livestock Improvement Corporation (LIC) on changing its share structure, said Kevin Wooding, Chairman of DFNZ.

LIC shareholders voted 86 percent in favour of changing the corporation's share structure from the current $1 nominal share to dual shares.

"Dairy farmers are pleased about the innovative new structure, which will more accurately reflect the financial value of the co-operative," Mr Wooding said.

"It will be interesting to watch whether the new share structure generates better outcomes for shareholders," he said.

DFNZ is an industry group within Federated Farmers of New Zealand (Inc), New Zealand's premier national rural lobby group with more than18,000 members.

Under the dual share arrangement, shareholders will hold two classes of share - a $1 co-operative control voting share, and an investment share.

"We hope that LIC continues to focus on its core business and remains a market leader in terms of value for money," Mr Wooding said.

However Mr Wooding said he was disappointed at the low turnout in the vote. Only about 900 of the co-operative's 12,500 farmer owners bothered to vote.

"The success of a co-operative relies on members taking an active interest in its affairs," he said.

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