Green Light for Fonterra's $3.2b Capital Return Scheme
Fonterra farmer shareholders have approved the mechanism for a $2/share capital return expected from the sale of its global consumer and associated businesses.
Guiney has been buoyed by support from farmers during her recent legal battle with the Fonterra board; the co-op took a court injunction that gagged media outlets from publishing ‘confidential information’ said to have been obtained from Guiney.
However last week, the board wrote to shareholders saying the legal proceedings had been settled.
“Fonterra and Leonie Guiney have agreed to settle the legal proceedings between them. Fonterra has agreed to meet Ms Guiney’s costs,” it said.
Guiney says she is delighted with the outcome.
“Common sense has eventually prevailed. I look forward to more timely and transparent action on issues that impact farmer owners’ investment in Fonterra, our cooperative and therefore New Zealand,” she says.
“Credit and thanks to all the shareholders who supported me. All funds donated will now be donated to Farmstrong.”
Guiney says as soon as the settlement occurs the solicitors will file a notice of discontinuance after which the injunction will be lifted.
Fonterra is no longer pursuing any ‘confidentiality issues’, required to keep an injunction in place.
The Fonterra board has softened its stance against Guiney since John Wilson said he will quit as chairman in November.
Wilson was one of the three board directors up for retirement by rotation; the two others, Ashley Waugh and Nicola Shadbolt, haven’t yet declared themselves available for re-election. Wilson’s departure will create one vacancy on the board.
Guiney, who served as director from 2014 to 2017, has criticised the director election process.
“Unfortunately the way the system works no one knows whether if you stand you are standing against incumbents or not, or if there are strong alternatives or not , until very late in the process,” she told Rural News.
“My goal is a better Fonterra; secret squirrel election systems are odd for a cooperative or for any elective process, making it hard to determine who might be available for election to contribute to a better Fonterra.
“I’m encouraged by the recent outpouring of support [I would get] from farmers if I chose to contest the election.”
Guiney and her husband Kieran own a dairy farm in Fairlie, South Canterbury.
