Production error further delays voting on LineTrust SC deed

A major Alpine Energy shareholder has again been forced to push back a proposed voting period on possible changes to its Deed of Trust because of a production error with the voter packs to be sent to consumers.

LineTrust South Canterbury, which owns and manages 40% of the shares in Alpine Energy, proposes a change to section 14.1 of its trust – which controls the way trustees must seek consumers’ approval to make changes in that deed.

As it stands, Alpine Energy’s approximately 30,000 South Canterbury consumers must be consulted by a poll, with 75 per cent of those who vote giving approval to any proposed change, before trustees can act.

The proposed changes will require only the majority of those attending an annual general meeting or special general meeting able to give approval to trustee-suggested changes to the deed.

The voting packs were meant to be sent to consumers on April 27 but were deferred to May 18 to allow more time

to consider and respond to submissions on the proposed change to the deed.

However, trust chairperson Joy Paterson said yesterday the packs had been delayed again, and will now be sent on June 3 due to a production error with the voting packs.

‘‘It was a production error found by the printing company at the last moment,’’ Paterson said.

‘‘We have had the voting packs reprinted and because of that we have had to extend the voting period.’’

Paterson said LineTrust South Canterbury expects the reprinting of the voting packs will add extra costs to the voting process.

The voting process will now end on July 1.

Former trustee Janya Lobb spoke out against the proposed changes in April, and said the alternative suggestion by the line trust was to have ‘‘a majority’’ of those attending an annual general meeting or special general meeting able to give approval to trustee suggested changes to the deed.

Paterson also told The Timaru Herald earlier that the alternative to a meeting was a postal vote and with approximately 30,000 consumers, this would cost about $65,000 and that cost would only increase.

She said the 20-year-old Deed of Trust could require about 20 variations (yet to be made) to bring its wording up to date with legislation, modern business practices and technology.

‘‘We have had the voting packs reprinted and because of that we have had to extend the voting period.’’ It is likely to add costs to the voting process.

Joy Paterson

LineTrust South Canterbury chairperson

Copies of the deed and proposed variations are in public libraries, Timaru’s Community House, and the Fairlie Resource Centre.