Vector chairman facing the axe
Michael Stiassny could be dumped as chairman of electricity network company Vector before its annual meeting in October, after being accused by its major shareholder of spreading ‘‘scuttlebutt’’.
Stiassny has previously said he would step down at the annual meeting, which is now scheduled to take place on October 29 after previously being pushed back by a month.
But Vector’s majority shareholder, community trust Entrust, said it had requested Vector instead call a special meeting of shareholders to remove Stiassny as chairman.
Entrust chairman William Cairns said that he believed Stiassny might be hoping for a change of Entrust trustees prior to the October meeting ‘‘thereby leaving open the prospect of reelection as director’’, though Stiassny responded that his own departure at the meeting was ‘‘a given’’.
Entrust said it had lost confidence in Stiassny ‘‘due to his behaviour in recent months’’, following a decision by Entrust’s trustees earlier this year to not support his re-election.
Cairns said Entrust made ‘‘the difficult decision’’ at a meeting last week to call for the special meeting of Vector shareholders.
‘‘Since May, when Entrust decided not to support Mr Stiassny’s re-election, his behaviour has changed,’’ Cairns said.
‘‘Our relationship has irrevocably broken down and all trust is gone. We have lost confidence and it is now time to take action to remove him as chairman.’’
Entrust said Stiassny had taken steps which Entrust considered not in the best interests of Vector shareholders and Entrust beneficiaries, and made it harder for Entrust to communicate with Vector.
But the tipping point appeared to be media comments from Stiassny which Entrust said suggested Entrust intended to sell down its shareholding in Vector, so reducing the dividends it paid to its 331,000 beneficiaries.
This year that dividend totalled $350 per beneficiary.
Cairns said the suggestion Entrust was preparing to reduce its 75 per cent stake in Vector was ‘‘scuttlebutt’’ that had caused upset and distress.
‘‘Let me be clear. Entrust’s shares in Vector are not for sale and we are committed to the ongoing payment of dividends to the community, based on Vector’s financial performance. End of story,’’ he said.
Stiassny – who is also chairman of the New Zealand Transport Agency and insurance company Tower – said in May that he would not be seeking re-election to Vector’s board at its annual meeting given that it appeared he no longer had the support of Entrust Trustees.
‘‘I’ve said publicly on multiple occasions that I am stepping down, therefore the added expense of an emergency general meeting to achieve something that is already a given is simply bizarre,’’ he said in a statement.
Stiassny said the decision to push back the date of Vector’s annual meeting from September to October was a board decision ‘‘and not – as Entrust would have us believe – at my direction’’.