Fonterra trims board size
Fonterra’s board has been reduced to nine - comprising six farmer-elected and three appointed directors.
The co-operative says the current trading platform technology for Fonterra shares has been in place since 2012 and the existing vendor agreement is due to expire shortly. This presented an opportunity for Fonterra to review and enhance the trading experience for Fonterra farmers.
In partnering with Sharesies, from mid-2024, the following new features will be on offer:
- Share trading on mobile devices, as well as via a web browser.
- Notifications to alert when the share price moves to a level that farmers are interested in.
- Ability to order shares without having funds in trading accounts. To date, farmers had to have money in their account to place an order.
- View holdings for multiple farms under one login.
- Ability to switch between Fonterra shares and personal investments held through Sharesies such as shares, savings or Kiwisaver under one login.
Fonterra’s acting chief financial officer Simon Till says the collaboration with Sharesies will deliver a number of benefits to make trading shares easier.
“Sharesies is in the final stages of completing a tailored and exclusive space for our shareholders that’s more intuitive and accessible for managing their investment in the Co-operative.
“We believe it will offer Fonterra farmers an improved trading experience and new features that will support liquidity under our Flexible Shareholding capital structure that was introduced last year,” says Till.
Sharesies co-founder and co-CEOLeighton Roberts says it’s a privilege to be trusted by New Zealand’s largest company to create a user-friendly mobile-first experience that gives farmers more oversight and interaction with their shares.
“From the beginning we were keen to understand and solve the challenges and roadblocks facing farmers when managing their investments,” says Roberts.
To date, only the Fonterra Shareholders’ Fund (FSF) units traded on the NZX have been available on the Sharesies platform. The units in the Fund represent 6.7% of the Fonterra shares on issue.
Under Fonterra’s Flexible Shareholding capital structure, units in the Fund (FSF) are held by a mix of farmers, retail investors, private wealth and institutions. Fonterra shares (FCG) can only be held by current or former supplying farmers, sharemilkers, contract milkers or farm lessors. Former suppliers can also transfer Fonterra shares to their relatives or related parties.
Further details about this new partnership and the timing for the transition will be provided in the coming weeks.
