No confidence vote by DNZ investors

Small investors in DNZ Property Fund have passed a motion of no confidence in the board and manager.

At a special shareholders' meeting in Auckland this week, from which voting results were released last night, 77 per cent expressed no confidence in the board and manager and 76 per cent also supported dumping the current capital raising proposal in favour of a new one - a move already made by the board.

Small shareholders voted 90 per cent for disclosure of full independent reports from Northington Partners and PricewaterhouseCoopers.

However, the resolutions failed because the "B" class shares, held by the company, have power of veto.

"A" shareholder representative David van Schaardenburg was elected to the board, but Peter Bruce and Peter Fletcher, representing disgruntled investors, fell short of the necessary votes.

DNZ Property has a property portfolio of about $700 million and a debt of about $328 million. Shares have traded at 79c, a considerable discount to the $2.20 asset backing.

- NZPA