PGG Wrightson store in Blenheim. Photo: Supplied
- Chairman and deputy chair ousted at annual shareholders meeting
- Two largest shareholders vote against re-election
- NZX places PGW's shares on trading halt
- PGG in breach of NZX listing rules
The two foreign largest shareholders in agricultural supplier PGG Wrightson (PGW) have joined forces to dump the company's independent chair Garry Moore, and independent deputy chair Sarah Brown, at the annual shareholder meeting.
A third director, Meng Foon, did not stand for re-election.
Chinese-owned Agria Corporation and Australian-owned Elders Limited voted against Moore and Brown's reappointment.
Agria Corporation owned 44.3 percent of the company, and Elders Limited 12.3 percent.
PGW's shares were halted on the NZX at its own request on Tuesday afternoon because the board had only three directors, breaching NZX listing rules and the company's own constitution.
NZX-listed companies must have a minimum of two directors resident in New Zealand.
History repeats
The move was a rerun of last year's unsuccessful attempt by Agria to dump three independent directors and replace them with four of its own.
PGW said its two largest shareholders had not given any reason for voting against the re-election of Moore and Brown, and it was taking legal advice.
Voting results showed Brown and Moore gained only 14 percent of the shareholder vote against 85 percent opposed, while an Agria nominee Wilson Liu received 99 percent backing for reappointment.
The company said the suspension of trading on the NZX had been to maintain an orderly market.
At last year's annual meeting Moore said he did not know what was motivating Agria and its supporters to roll the board and take control, but said any future attempt would likely result in no local candidates being willing to stand for the company's board.
Two of Agria's former director nominees have previously been thwarted in joining the company's board because of involvement with financial authorities in the US and Singapore.
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