Alleged Zespri proxy misuse questioned

File photo / Alan Gibson

Turners & Growers is calling for a ministerial inquiry into an alleged misuse of proxy vote information at kiwifruit exporter Zespri.

Turners & Growers chairman Tony Gibbs, in a letter to Agriculture Minister David Carter, said there were allegations of repeated misuse of proxy vote information before director elections.

"In our view, the behaviour of Zespri directors in repeatedly accessing confidential shareholder proxy vote information and Zespri's continued failure to hold those responsible to account falls well short of its stated corporate governance practices," Gibbs said.

"Importantly, [Zespri chairman] Mr [John] Loughlin's assertions that this is an historic[al] issue and therefore no longer relevant are not acceptable."

A spokesman for Zespri said the incident was investigated by the board in 2008 and although not contrary to the Companies Act 1993 or the company constitution, was in contravention of a confidentiality agreement with the share registrar.

"In 2009 clauses were added to the Zespri Group constitution to ensure that no voting or proxy information is received by directors or employees prior to the shareholder meeting, and that individual voting preferences are not available to directors after any such meeting," he said.

New Zealand Kiwifruit Growers Inc president Peter Ombler said: "We think that the situation's been dealt with adequately, that it won't occur again."

The Independent Kiwifruit Growers Association has called for an independent inquiry on the misuse of confidential shareholder proxy votes.