KEY POINTS:
It could be the beginning of the end for NZX listed Dairy Equity tomorrow at only its first annual meeting, with some shareholders backing a resolution to investigate winding up the company.
Dairy Equity was formed to get exposure to the booming dairy sector by buying the beneficial ownership of Fonterra fair value shares held by farmers.
One resolution tomorrow will ask shareholders to back a recommendation from the board to continue with the business until there was clear direction about Fonterra's capital restructure, and to call a special meeting to decide the future of the firm before June 30.
However, should the resolution fail another option will go to the vote calling for action to "investigate the steps necessary to realise the investments of the company with the intention of returning the net proceeds to shareholders".
Resolutions tomorrow need a 50 per cent vote in favour, while any subsequent vote to actually wind up the company would need a special meeting and 75 per cent support.
Christopher Swasbrook, managing director of 5.5 per cent shareholder Elevation Capital, said there was no future for the company irrespective of the capital restructure outcome at Fonterra.
"We want an immediate wind up and capital returned," he said.
There was strong shareholder support for winding up the company, Swasbrook said.
