New Zealand Stock Exchange Members to Vote on Demutualisation

24 September 2002 - The Board of the New Zealand Stock Exchange is recommending that Members vote in favour of a restructuring proposal to facilitate demutualisation of the NZSE.

Members will be asked to vote at a Special and Annual Meeting on 16 October, which requires approval by 75% of all voting members. Explanatory documents and the notice of meeting were distributed to Members this week.

Chairman Simon Allen says that ongoing consultation with Members and other stakeholders has indicated a good level of support for demutualisation, which follows similar moves by other Exchanges including Australia.

“There are many benefits for implementing a corporate structure, including a clearer focus on customer needs, effective decision making, the flexibility to respond to changes in the business environment, better access to capital to facilitate market growth and removal of perceived conflicts", Mr Allen said.

“While market infrastructure has been continuously improved, the NZSE Board now recognises that new technology and competition in global securities markets are driving a need for continued change and investment.

“The NZSE Board has given detailed consideration to the governance, operating and ownership structure which will best position NZSE for the future.

It is the view of the Board that a corporate structure will best provide the incentives and flexibility NZSE needs to grow, develop and support the New Zealand capital markets.”