Feisty finale at IEL

Press, 11 December 1989, Page 13

Feisty finale at IEL

NZPA Sydney Shareholder discord over the re-election of chief executive, Mr Rodney Price, marred Sir Ronald Brierley’s twenty-fourth and final annual meeting as chairman of Industrial Equity, Ltd, on Friday. A vociferous minority of shareholders at the Sydney meeting opposed Mr Price’s • re-appointment to the board after he and a fellow director, Mr Bill Loewenthal, had attempted to buy out the company with the textile magnate, Mr Abe Goldberg, through Corama Pty. Although a show of hands clearly showed that Mr Price’s opponents were outvoted, several shareholders demanded a recount while Sir Ronald continued with the business of electing the remaining 11 members of the board. Sir Ronald ignored cat calls, including “it was a Queensland election,” until all directors proposed had been elected. He also calmly pointed out that he had proxies representing well over half the voting shares to support the ■- board’s election. Mr John Spalvins’ Dextran Pty controls, the company following its successful offer of 230 c a share which Brierley Investments, Ltd, and' Goodman Fielder Wattie accepted for their substantial holdings in lEL. Mr Spalvins is the new chairman. Several shareholders criticised Mr Price’s role in the attempted management buyout, suggesting — among other things — that as chief executive he was primarily

responsible to the shareholders and that the buy-out would have taken up much of his working time. Sir Ronald said there was increasing argument about the conflict between management being paid to run a business and seeking to buy the same business from the shareholders at the same time. But “I would strongly resist any criticism of Mr Price,” he said. Sir Ronald also argued that Corama’s proposed bid of 240 c a share had put a market price on lEL stock that may not otherwise have been achieved. Mr Price was given no opportunity to answer his critics publicly, but Mr Loewenthal — after paying tribute to Sir Ronald’s service as chairman — said he and Mr Price had nothing to apologise for. No mention was made at the meeting about a report that Corama was suing BIL for sAust2sM, relating to the sale of lEL shares by BIL to Corama. Mr Price and BlL’s chief executive, Mr Paul Collins, declined comment afterwards, on the grounds that the matter was before the courts and “sub judice.” Sir Ronald said the lEL board’s Part B response to ’ Dextran’s takeover offer should go to shareholders on December 20. BlL’s two retiring members of the lEL board, Mr Collins and Mr Bruce Hancox, recommended shareholders accepted the cash offer. Other non-Dextran representatives on the board recommended shareholders retained their shares, believing they were worth more than 230 c each.