IT Capital shareholders get the pip over options
By Aimee McClinchy
The board of IT Capital was forced to throw out a proposed directors' fee increase after shareholders complained at a marathon annual meeting this week.
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.
Comments from our readers
No comments yet
Add your comment:
Zespri urges kiwifruit growers against PSA class action
Vodafone NZ sinks into the red as finance, operating costs mount
NZ utility companies are the worst payers in the country, D&B says
Australia's Quattro looks to raise A$305 million listing NZ property portfolio on ASX
NZ commodity prices fall for 7th month in Sept, ANZ says
Fed Farmers warns dairy farmers face 'austerity' this season
Finzsoft shares soar to record after signalling fourfold earnings boost
Asking prices for NZ properties plateau nationwide, Trade Me data says
Goodman Fielder flags early redemption for $250 mln of NZ bonds
Vista Group International signs major Chinese supply deal