Former Renaissance CEO Paul Johnston is to transfer 604,470 shares in Renaissance which he owns, back to Renaissance, more than a year after leaving Renaissance.
In a notice to the NZX, Renaissance notes: “The company, on 30 May 2008, advanced a loan to the shareholder [ie Johnston] in the amount of $335,000."
Renaissance's 2009 annual report notes: "Paul Johnston was granted an interest-free loan of $335,000 for a period of three years to enable him to exercise 500,000 outstanding employee share options. This loan was approved by shareholders at the Annual General Meeting held on 23 May 2008. The loan must be repaid irrespective of the performance of the Company or its share price. Mr Johnston resigned from his position with the Group effective 31 December 2009 and the terms of the loan have not
The statement posted today by Renaissance on the NZX states: “Repayment of the loan is due; the shareholder is unable to repay the loan in full.
“It is proposed that the shareholder will transfer the shares (being all the shares in the company owned by the shareholder) to the company, in full satisfaction of the repayment obligation.
“Without such transfer, ... the company may not receive any repayment in respect of the loan.”
Johnston left Renaissance in 2009 and went on to head Simms in New Zealand in January 2010.