Sealegs fined $8000 for breaching director rules
AMPHIBIOUS vehicle maker Sealegs has been censured and fined $8000 by the NZ Markets Disciplinary Tribunal for not having enough independent directors on its board.
Sealegs also breached NZX listing rules by failing to have at least three members sitting on its audit committee, and by not having a majority of independent directors on its audit committee.
The breaches occurred after Michael Beagley resigned as a director of the company in August.
Following his resignation, Sealegs applied in September for a temporary waiver from listing rules, which the NZX declined in October.
In November Sealegs appointed former cabinet minister Wayne Mapp as a new independent director.
On the day of Mapp’s appointment Sealegs founder David McKee Wright took the helm as acting chief executive after the resignation of its previous chief executive David Glen.
During the period it was in breach, Sealegs completed a $1.27 million capital raising.
Sealegs shares last traded at 12.5c a share, giving it a market capitalisation of $17m. A bog-standard savings account from your bank will earn you up to 4.4 per cent interest if you put money in every month and never touch the stash.
If only it were that simple. The main flaw is there is nothing to stop you from dipping into the account whenever you hit a cashflow bump, or feel like splashing out on a treat.
With ‘‘bonus saver’’ accounts in particular, you will lose almost all that juicy interest the moment you succumb to temptation. Savings accounts do work, but only for those with cast-iron discipline. Credit unions are the big banks’ smaller cousins, and are owned by their members. Several of them, including First Credit Union, Aotearoa Credit Union and Police Credit Union, have special Christmas savings accounts available. Both big supermarket chains have their own Christmas Clubs too, and a spokeswoman for Countdown says it’s been doing it for over a decade.
While the number of punters taking part is commercially sensitive, it is apparently ‘‘extremely popular with customers’’.
You can buy vouchers throughout the year, and get a 5 per cent bonus when you spend them in December and January.
With no tax to pay, that’s better than a bank account interest rate. However, it does limit you to doing your shopping at one chain of stores.
There is also no automatic way to keep the savings rolling in, and nothing to stop you from spending the vouchers early. Stores owned by Foodstuffs have been running Christmas Clubs for 50 years, and have more than 150,000 customers between them.
For those that take part in New World and Pak’nSave’s schemes, the earlier in the year you start saving, the bigger the bonus.
From December 1 to February 29 you will get $5.32 in return for every sweet Sir Edmund you save. In the three months before December, that’s reduced to $5.17. For someone making regular payments year-round, it works out to about a 4 per cent bonus.
That is better than the bank, but not as good as Countdown. Again, if you spend it early, there is no bonus.
However, the big advantage is that New World and Pak’nSave switched to a card-based scheme a few years ago. That means you can set up an automatic payment to keep the savings rolling in, and unlike paper vouchers, you can also register your card in case you lose it or have it stolen. The red sheds are getting in on the act too, and growing fast – customer numbers increased 12 per cent between 2012 and 2013. Each December you will get 5 per cent off purchases using money saved throughout the year.
Again, you can set up automatic payments or direct debits to keep the savings rolling in. The disadvantage is the window for spending is restricted to December only, so you will have to wait till next year if you have any left-over cash. The Christmas hamper company has an array of festive feasts, some costing more than $900, that can be purchased with a layby over the course of the year.
There is everything you can imagine on offer. Billing options of direct debit or credit card result in smooth, weekly payments of only a few dollars, and keep the cash safely out of reach.
However, there is no interest earned, and the contents of the hampers don’t stack up next to saving the cash and buying the items yourself.
The company explains that its costs include collecting payments, special packing, delivery and tax.
‘‘Thousands of customers think that Chrisco is great value and tell Chrisco’s main rival, and most outspoken critic, is Hampsta, a Christmas savings scheme based on a prepaid debit card which you can use for a guilt-free spending spree between December 1 and January 10.
Its main advantage over the supermarkets is that you can spend the cash at a range of different retailers like the Mad Butcher, Nosh, Briscoes and Mitre 10, not just one.
But it comes at a price. With a joining fee of $20 and a continuing annual fee of $39, it is the only option here which will actually cost you money.
Managing director Gary Alway says Hampsta has over 20,000 active members, who save average balances of $800 to $1000. The fee covers the cost of holding customers’ money with the Public Trust in a government-guaranteed account. If the company falls over, your savings are safe. It might sound unlikely, but a few years ago Mrs Christmas did just that. Which option you choose will depend on your personal preferences and shopping habits, but be sure to choose one of them.
Christmas should be all about relaxing with friends and family, not stressing over unpaid bills, an empty fridge or a lack of presents under the tree.
Don’t let Christmas creep up on you next year.