Staff shares for chop
Mair Astley Holdings is asking shareholders to approve the cancelling of the company’s staff share-pur-chase schemes. Shareholders will be asked at the annual meeting of the company in the Christchurch Town Hall bn Tuesday, November 14, to vote approval for reduction of the company’s capital, to allow for repurchase .of staff shares.
The Mair Astley directors say in the notice of meeting that under the company’s 1988 partly-paid share scheme more than 4.415 million shares were allocated to trustees on behalf of more than 200 employees who applied for shares. However, the allocation was invalid because no pros-
pectus accompanied the offer. This breached the Securities Act.
A prospectus was prepared to accompany the offer but it was not completed when the
offer was registered, and it • did not accompany the application form. “The fault cannot be remedied, and the only course open is to reverse the allocation so that the shares revert' to the trustees,” the directors say. ( The directors have ruled out making another partlypaid issue to replace the cancelled issue. They say they do not regard partlypaid share schemes as appropriate for financing the company or rewarding the employees, but say they are committed to providing the staff with performance incentives. The company is also offering staff the opportunity to withdraw from earlier staff
share schemes — those of 1985 and 1987. These were at 277 c and 258 c respectively, and were for significantly smaller numbers of shares. One hundred and fifty staff members have accepted the offer to withdraw, Mair Astley snareholders will also be asked to approve new articles of association, required to meet the Stock Exchange’s amended listing requirements. Changes include: • Power for the chairman to adjourn or dissolve a meeting of the company if it is “unruly, disorderly, or inordinately protracted.” Unfinished business may be determined by a poll. • The retiring age for directors will be increased from 65 to 72. '
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Bibliographic details
Press, 24 October 1989, Page 25
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322Staff shares for chop Press, 24 October 1989, Page 25
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