A. S. Paterson replaced as chairman

Press, 30 July 1976, Page 17

A. S. Paterson replaced as chairman

PA WellingV -t: The chairman of A. S. Paterson and Company, Ltd, Mr Alex S. Paterson, has been voted off the board of directors in a highlyorganised proxy battle. The company has just emerged from a time of very successful reorganisation and expansion. Shareholders of the company might never know how the defeat was engineered, because the board of directors has decided not to release details. The new chairman is Mr G. P. Shirtcliffe. a Wellington i sharebroker and descendant, of Sir George Shirtcliffe, who [was associated with the comrpanv almost since its inception.

Mr Shirtcliffe said that the ! board decided that the poll was a “domestic electoral matter” and that no de*-:is would be released. Mr Paterson and two other

directors were up for re-elec-tion at the annual meeting, because their normal threeyear terms had elapsed.

The motion that Mr Paterson be re-elected was pro-: posed and seconded, then three men stood up and asked that a poll be taken on the motion. The call for a poll was made in the names of Mr J. G. Barnes, Mr Spencer G. Smith, and Mr I. A. Pringle, Wellington solicitors. Mr Barnes confirmed that he was acting for a client, Mr Smith said that “family” interests were involved. After a board meeting considered the result of the poll the directors released a statement. whi.h read:— “The board o directors of A. S. Paterson and Co, at a meeting immediately after the shareholders’ meeting, unanimously expressed regret that Mr Paterson had not been reelected to the board.”

The directors said they recognised that the voting disclosed disaffection among a significant section of the. shareholding, and they pro-' [posed to explore immediately: the cause of the rift with a| view to correcting them in: the interests of all the share-, holders. “The board intends that when this has been achieved it will call a meeting of shareholders to < rnsider a motion that. Mr Paterson be re-elected as a director.” Mr Shirtcliffe denied that either his or any of his family! shareholdings had been used: t< out-vote Mr Paterson. He said he did not hold the: votes of the estate of Sir: George Shirtcliffe, which is thought to be well over 100,000 shares. When asked what the board meant by the word “disaffection” Mr Shirtcliffe said that the board itself was a little perplexed by the day’s events, and since they were of an unusual nature there must be a fundamental rea-! son for the problems. But “I think they can best be sum-: marised by the word ‘disaffection’,” he said. Mr Shirtcliffe also denied that there was discontent among board members over the decision to make a bid| for A B Consolidated Hold-, ings. Ltd. '