Motor Trade Finances shareholders gave strong support to
their board and management at a meeting in Dunedin
yesterday. Photo by Gerard O'Brien
The board of Motor Trade Finances received overwhelming
support for its shareholders in Dunedin yesterday when seven
resolutions questioning the performance of the company and its
directors were defeated.
The margins of defeat for six of the resolutions ranged from
83% to 85%.
Resolution seven, which called for the company to provide
regular updates to shareholders on the implications of the
Sportzone case was defeated by 75%.
Chairman Stephen Higgs said in an interview the board
believed it had kept shareholders well informed but would
make every effort to provide timely information in the
''We are delighted with the resounding support from
shareholders for the management. We want this to be the end
of the matter so we can get on with growing the business.''
MTF was obliged to hold a special meeting after it was
requested by nine MTF shareholders, who together held 8.1% of
the company's shares.
The purpose of the meeting related to MTF's handling of the
Sportzone court case and its communication and disclosure to
shareholders in relation to the litigation.
The ongoing High Court civil proceeding was brought by the
Commerce Commission in 2009 for alleged breaches of the
Credit Contract and Consumer Finance Act 2003, in respect of
credit fees charged in 39 credit contracts originated by
Sportzone Motorcycles Ltd (in liquidation).
The issue was complicated by a takeover approach from
Heartland Bank, which seemed to seek the same information as
the nine shareholders.
Further complications arose when Heartland was not prepared
to enter into a confidentiality agreement.
Asked yesterday about the intentions of Heartland in
acquiring MTF, Mr Higgs said the board did not make it part
of the special meeting.
If Heartland was interested in acquiring MTF shares, there
was a proper process w and he urged the bank to follow that
''For now, it is business as usual,'' Mr Higgs said.