Sheppard for Hanover’s board
Shareholders Association Chairman Bruce Sheppard has lashed out at the wrong target as far as the Hanover Finance debacle is concerned.
In today’s Dominion Post he called Hanover Finance investors “dumb wits”, “idiots” and “stupid lunatics” for supporting the debt restructuring proposal.
Sheppard should have directed his outburst against independent Chairman Greg Muir, PricewaterhouseCoopers, the Securities Commission and the company’s auditors. Maybe he is peeved because Hanover’s investors voted against him asking more than one question at Tuesday’s meeting.
Investors voted in support of the debt restructuring because it was recommended by Muir and PricewaterhouseCoopers. It was also effectively endorsed by KordaMentha and the trustee, Guardian Trust.
Investors usually comply with the recommendations of independent directors and their advisors while Hanover Finance investors were also attracted by the proposed repayment schedule shown below. No repayment programme was offered under the receivership alternative.