Fonterra Shareholders Fund growth threat to farmer control even if they can t vote: Chairman
12 May, 2021 05:35 AM
5 minutes to read
Fonterra board aiming for November shareholder vote on capital restructure. Photo / File
The Fonterra Shareholders Fund does not have voting rights in New Zealand s biggest business, but it does have influence, which is a form of control, says chairman Peter McBride. The greater the size of the fund, the greater the level of influence it can bring to bear on the co-operative s leadership.
Fonterra farmer-shareholders and unitholders had different ideas about risk and value, he said.
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McBride was responding to an argument against axing or capping the $500 million Fonterra Shareholders Fund, in which the non-farming public can invest through buying units in farmer shares.