Unitholders in the New Zealand Rural Property Trust didn’t get an opportunity to vote on the future of the fund at an extraordinary meeting today as a quorum was not reached.
The quorum required was a simple majority of all unitholders, present in person or by proxy. However, the total was about five per cent short of what was required.
A group of unitholders are wanting to have the $72 million trust put into a state of controlled liquidation because of its poor financial health.
Their analysis of the fund shows it has a negative cash flow, its income last year was insufficient to cover all the manager’s and the trustee’s fees, and the trust has not paid a dividend for 18 months.
In addition the group is concerned that control of the trust is shifting from ordinary unit holders to interests associated with the management company.
That has happened as Williams and Kettle, which is the major shareholder in the management company, recently spent about $5 million buying units from investors who had requested redemptions.
The meeting, which will vote on four resolutions, is now scheduled for March 11.
Unitholders in the New Zealand Rural Property Trust didn’t get an opportunity to vote on the future of the fund at an extraordinary meeting today as a quorum was not reached.