MTF to seek shareholder approval to increase capital
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Motor Trade Finances Limited (MTFHC) | 5:44 pm, Friday 10 October 2008 MTF to seek co-operative shareholder approval to increase capital
In order to meet future capital requirements, resulting from the impending supervision of finance companies by the Reserve Bank and changes to International Reporting Standards (IFRS), the board of Motor Trade Finances Limited (MTF) will be putting a restructuring proposal to its co-operative shareholders. The proposal includes additional capital, capitalisation of undistributed profits and conversion to an investor owned company and, if acted upon, will ensure the company has appropriate capital to meet prudential, regulatory and operational requirements.
The security position of perpetual preference shareholders will be enhanced by the capital raised and the undistributed profit capitalised. Under the proposal there is no change to the rights or obligations attached to the perpetual preference shares or held by the holders of those shares. All dividend and other rights in respect of the perpetual preference shares will continue and remain unaltered.
The restructuring proposal will be put to co-operative shareholders at a special meeting on 29 October 2008. Because perpetual preference shareholders do not have voting rights you are not required to take any action. We will communicate with you immediately after the meeting to inform you of the outcome.
Please feel free to contact me directly if you require further information.
Yours sincerely
Angus Bradshaw
Managing Director
abradshaw@mtf.co.nz
03 467 7988
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