All clambering to court over Richmond

By PHILIPPA STEVENSON

A third group has sought a High Court ruling on the legality of southern meat company PPCS' shareholding in northern counterpart Richmond.

A group of Richmond shareholders joined the court queue in Dunedin on Friday, following a similar move by Richmond at the same court last week. which, in turn, was followed by PPCS filing proceedings on the same matter in Auckland.

The shareholders have sought a ruling on whether PPCS complied with the Securities Amendment Act when it transferred its defaulter securities to Active Equities' Hawkes Bay Meat in July 2000.

Remedies the group has sought include a court order for PPCS to dispose of its Richmond shares.

PPCS had to sell its 34 per cent interest in Richmond in 2000 when it was found to have breached the Richmond constitution.

The shareholder group spokesman, lawyer Robin Bell, said Active Equities' purchase was funded by PPCS' investment in redeemable shares issued to a PPCS subsidiary and a loan from Citibank.

"It now transpires that Citibank was given an indemnity by PPCS to protect it from any loss on the advance to Active Equities," Mr Bell said.

The group claimed this investment and other circumstances were enough for PPCS to have a relevant interest in the shares that required disclosure under the act.

The matter was important because of PPCS' repurchase of part of the Richmond shares from Active Equities last June, with commitments allowing it to repurchase the remaining shares next year, he said.

The group hoped its claim would coincide with Richmond's proceedings.