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Shareholders in Kerry Co-op have narrowly rejected the share redemption scheme put forward by the co-op board.
At a special general meeting (SGM) of Kerry Co-op on Wednesday in Tralee, 65% of shareholders voted against the scheme. A two-thirds (66%) majority was needed for the scheme to pass.
What happens next is not clear. Although shareholders have voted against the scheme, the Irish Farmers Journal understands that the co-op board believes it can push ahead and implement the scheme regardless.
In an exclusive interview last week, Kerry Co-op chair Mundy Hayes told the Irish Farmers Journal that the “cash for shares” scheme did not require shareholder approval and will be taking place irrespective of the result of the SGM vote.
More than 1,500 shareholders turned out for the vote at the Brandon Hotel in Tralee, which is one of the biggest turnouts in years. Unlike many of the information meetings held in the lead-up to the vote, the mood from the floor at Wednesday’s SGM was measured.
Shareholders from both sides of the debate spoke at the meeting making final pleas in favour or against the scheme. In the lead-up to this week’s SGM, the so-called Shareholders Alliance had repeatedly criticised the share redemption scheme as a means for introducing liquidity to Kerry Co-op shares and argued it was extremely inefficient from a tax perspective.
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