LIC shareholders will meet this week to vote on a new share structure.
And chairman Murray King wrote to shareholders last week, making it clear the co-op has no ‘plan B’ in the event of voting not supporting a single share structure. The proposal must garner 75% support to pass.
King says feedback from some farmers was that a ‘no’ vote would result in a second vote on a revised deal.
“To avoidance any doubt, this [idea] is completely wrong,” says King. LIC directors and “expert advisers” have been working on this proposal for over two years, he says.
“We have considered the issues closely and it is clear this is the fairest, balanced and most transparent way of resolving them.
“We have no plan B. If there is a ‘no’ vote we will not go away and revise the deal with an eye to coming back for a second vote in the near future.
“Although clearly disappointed we would respect the decision of our shareholders and focus on making the best out of carrying on with the existing share structure.”
King says that two classes of shares with unequal rights are not suitable for a modern, progressive co-op.
LIC’s special meeting will be held in Hamilton on March 14.
