31 Jul 2014

MTF to meet over ComCom action

8:55 am on 31 July 2014

Just nine of Motor Trade Finances' (MTF) 500 shareholders are worried about Commerce Commission legal action over fees.

The company will hold a special meeting on 13 August to vote on a number of resolutions relating to the litigation, largely to do with the potential liability it may be facing.

It's urging shareholders to vote against the resolutions but said they won't be binding on the board in any case.

In the case the Commission took against MTF, the High Court ruled last year that some fees MTF charged were unreasonable.

About half MTF's annual profit comes from fees.

Company chairman Stephen Higgs said MTF disagrees with the dissident shareholders on the likely outcome and can't quantify any potential liability yet.

"There is an appropriate process to go through in terms of this litigation. We're still awaiting the quantification exercise that we've been working through constructively with the Commission, as instructed by the court, and until that process is finalised, any outcome would be mere speculation and that would be inappropriate and irresponsible."