Directors carry the day

Press, 7 November 1978, Page 26

Directors carry the day

Commercial

PA Napiei An attempt by some shareholders of Rothmans Industries, Ltd, to block re-i tirement allowances for nonexecutive directors, failed at % special meeting of the company in Napier on Friday. However, before the special order was finally adopted by the meeting the small band of shareholders forced a vote on the issue. The matter brought a sharp reaction from the shareholders, who attempted to have the matter thrown out. There were claims that lhe directors had got out of touch with shareholders, and also that the administrators were trying to have ail the power of running the company placed in their nands.

Other shareholders believed that before directors received additional emoluments, share dividends should be increased. “I believe this to be poor treatment of shareholders,’’ said one man. The meeting was held before the annual general meeting of the company The chairman (Mr K. D. Butland) said the move was in line with other major companies throughout New Zealand. The deputy-chairman (Mr D. A. MacDonald) who put the motion, said the nonexecutive directors could not join the company superannuation scheme, and therefore would be protected bv the move. An amendment to the original motion was put forward by a shareholder,

which called for the matter to be thrown out. A show of hands was! taken on the amendment; Mr) Butland then called for the! poll. A discussion took place on j whether directors should vote on the issue, and also’ if proxy votes could be cast. Some of the shareholders! believed only those people! at the meeting should be) able to vote. After further! discussion it was resolved' that all proxy votes would be accepted. The amendment calling for’ the matter to be dispensed! with was defeated, with 98.5 per cent of the votes being cast against it. The motion was then put; and carried —- with 99.16 per cent of the 11.950,090 votes in favour.