Zespri investors vote for changes

Zespri shareholders have voted to ensure growers have greater control of the co-operative.

About 75 per cent of shareholders have voted to change a number of aspects relating to Zespri’s constitution, the most important centring on who can be a shareholder.

Zespri has proposed a share cap with a maximum shareholding of four shares for each tray a grower produces.

At present about 15 per cent of Zespri’s 120 million shares are owned by people who are no longer involved in the industry.

Another 5 per cent are held in the name of a different entity to the entity that produces fruit for supply to Zespri, although the two entities are related.

About 8 per cent of growers are considered to be ‘‘overshared’’, in that they hold more than the fourto-one share cap, while 29 per cent are rated as ‘‘undershared’’.

Of the total kiwifruit grown in 2016-17, 32 per cent was produced by growers who do not have shares.

Zespri chairman Peter McBride said the changes had been canvassed over five years.

‘‘Without these measures, there is a risk that, over time, ownership of Zespri would progressively move away from the current growers supplying Zespri and undermine the stability of our industry structure,’’ he said.

He said another step to improve alignment was a targeted share issue and buyback programme, and was planned for the second half of the year. It is the first major review of the regulations since Zespri was corporatised in 2000.