Zespri under fire over board election bullying claims

By Duncan Bridgeman

Friday 5th July 2002

A disgruntled kiwifruit grower yesterday lashed out at Zespri chairman Doug Voss, accusing him of misleading shareholders in the run-up to this month's board elections.

Wellington accountant and orchardist David Underwood said Zespri shareholders were being "bullied" into voting for existing board members so the company could maintain its status quo.

"The board is bullying [shareholders] by recommending their own people and not the independent people standing as directors," he said.

Mr Underwood, who is standing for election to the Zespri board, said Mr Voss had travelled all over the country campaigning for growers vote to retain existing board members Alistair Betts and John Loughlin, who are up for re-election.

A front page story in this month's kiwifruit flyer also recommended their votes.

"The incumbent directors are telling shareholders who to vote for but it's the shareholders' decision, not the board's," he said.

Mr Underwood said there were serious issues that needed to be brought to shareholders' attention but the board was neglecting them by trying to keep the status quo.

He said the whole industry had been in an uproar over payment arrangements that saw many growers not getting paid early enough.

Last year Zespri had net interest cost of $153,000 compared with a net interest cost of over $2 million in 2001, he said.

"That is almost 25% of this year's pre-tax profit which has resulted from a funding trick played on growers."

Mr Underwood said at balance date Zespri held $22 million of surplus funds of which over half could easily have been paid out before balance date.

"Changes are needed at board level if kiwifruit growers were to get the rewards they deserve," he said.

"The whole industry has been in an uproar over payment arrangements. People didn't get the money when they needed it."

Mr Underwood is a fellow of the Institute of the Chartered Accountants of New Zealand.

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