By Aimee McClinchy
Friday 1st September 2000
|Text too small?|
The directors defended the company's share and option schemes as de rigeur in the new "e-conomy" in the face of criticism from shareholder rights campaigners Brian Gaynor and Bruce Sheppard.
In a two-and-a-half hour meeting they criticised the directors for failing to have a code of disclosure and for buying shares and options at a discount. On at least one occasion a director bought shares at 7c when the shares were trading at 28c.
"I'm comfortable with your [day to day] management but I'm not comfortable with your corporate governance," Mr Sheppard said.
A resolution to increase directors' fees to $150,000 each was defeated after shareholders pointed out it did not say where the extra money would come from, and so did not comply with the company's constitution.
IT Capital chairman John Robertson withdrew the resolution, saying it was a "distraction." He added the board was looking at adopting a code of some form, in line with both New Zealand and Australia, where IT Capital is listed on the ASX.
The directors strongly disputed all the claims made about impropriety in their own share buy-ups and said the company was duplicating a US IT company, Safeguard, which has had one of best growth rates for an IT firm.
Option schemes for directors and staff was becoming a well-used method, especially in such IT companies, and those occasions referred to had been part of management contracts, the directors said.
Chief executive Mr Dittus said the company planned to tackle the "new e-conomy" by partnerships with international venture capital funds.
No comments yet
BurgerFuel narrows 1H loss, plans to buy more franchised stores, expand into US
Stop calling KiwiSaver suspension a 'holiday', says Retirement Commissioner
NZ credit, debit card spending falls in November amid earthquake disruption
Ex-Auckland Transport staffer and supplier found guilty over $1M-plus bribes
NZ wool prices fall at weekly auction as supply exceeds expectations
Mercer sells 130.8M shares to fund acquisition, one-third sold to managers
NZ dollar rises to 18-month high vs euro after ECB extends asset purchases
While you were sleeping: ECB extends asset purchases
Chinese group sets out Airwork offer to shareholders
MARKET CLOSE: NZ shares gain, led by Tower, Orion Health, A2 Milk