Shareholders approved the move to a single share structure at a special meeting in March 2018. Ministerial approval, required under the Dairy Industry Restructuring Act, was received in April 2018.
Prior to the share simplification, LIC had a dual share structure with two kinds of shares:
- Co-operative control shares — compulsory for qualifying farmers.
- Investment shares — could only be purchased by holders of co-operative control shares.
The Board proposed to simplify LIC’s share structure by bringing the two classes of shares together into a single class to:
- Protect the co-operative principles that are fundamental to LIC
- Ensure a fairer system that treats all shareholders equally
- Give LIC capital flexibility to respond to inevitable future challenges and opportunities
- Support LIC’s strategy (Vision, Purpose,Strategic Themes and Values)
- Deliver a simpler share structure with less hassle for shareholders and LIC