Survey shows most Fonterra farmers plan to use capital return for debt reduction
A large slice of the $3.2 billion proposed capital return for Fonterra farmer shareholders could end up with the banks.
He wants a postal ballot, rather than voting at a special meeting to be held on June 25.
"All Fonterra farmers must be given the right to have their say on the core issue of whether TAF is needed, and not be distracted by the issues of milk price and share value.
"The message I get from a growing number of farmers is that each and every one of them wants to see the full details and due diligence on TAF proposals and then make a decision to support it or not by way of postal vote.
"Any attempt by Fonterra to seek partial endorsement of TAF, before the details are known by its shareholder-farmers, is, in my view, an undermining of their basic shareholder rights."
O'Connor also wants the Dairy Industry Restructuring Amendment Bill currently before Parliament to be withdrawn until a clear mandate is received for TAF to proceed.
"The legislation as it stands will create a dilemma for farmers and will impose milk price interference and manipulated share price on their cooperative if they reject TAF.
"Fonterra's directors have astutely recognised the growing concern among farmers regarding the proposed changes, which have yet to be fully detailed or explained by the board of Fonterra."
