DEAR SIR, In relation to the furore currently going on about Kerry Co-op shares being used to fund any joint venture or takeover of the dairy processing business of Kerry Group plc, I would like to point out, as has been highlighted at several AGMs, that Kerry Co-op is a co-op in name only.
It does not satisfy the criteria to be considered an active co-op, in my opinion.
Much more than half of its current shareholders are inactive, and, as such, any move by the current, or any future board to attempt to use shareholder money would surely fail if challenged in a court of law. In fact, the current conversion of 5.9/1 could actually be challenged, and restored to 6.14/1, the true value of the shares.
There are 2,500 active producers, many of whom own a solitary share, out of a total of over 12,000 shareholders.
Let them use their own money. The same as the founding members of Kerry Co-op had to do.
There is no duty on any of the dry shareholders to subsidise the funding of any venture, and any vote must be inclusive of all shareholders, in accordance with the rules of a limited company, for that is what I believe Kerry Co-op is now.
Will its status as a co-operative withstand any legal scrutiny?