Capital structure vote at Fonterra AGM

2009-10-27

Fonterra farmers will vote on changes to the co-op's capital structure at its annual meeting on November 18. Chairman Sir Henry van der Heyden said there had been strong attendance and feedback from shareholders at the 77 meetings held recently around the country with a record turnout of 3500 farmers.

They had generally supported the changes, which allow farmers to lift their shares to 120 percent of milk supply. Some changes would be made to this proposal, named Step One, while Step Two on share value would stay the same. A detailed proposal will go out to shareholders before the meeting.

The Fonterra Shareholders' Council (FSC) has voted to support the proposal to be put to the vote.

Smaller regional ‘shed' and ‘on-farm' meetings are still being held throughout the country and there will be a round of 40 meetings between 9-11 November for further discussions with directors.