Information technology investment company IT Capital is urging the government to modernise rules relating to the distribution of information to shareholders.
IT Capital believes shareholders should be able to elect to receive a notice of company information on a Web site by email, fax or letter rather than paper. The Companies Act allows for information to be delivered, posted or faxed to shareholders.
IT Capital recently mailed information to shareholders in preparation for its EGM (extraordinary general meeting) and received complaints from many, upset at the volume of paper the company was forced to send them, under the current rules. IT Capital managing director David Seton says that no longer makes sense in an increasingly digital world. He has asked the Minister of Commerce to modernise the rules. He says this would reduce the cost of doing business; would be a positive signal to offshore investors that New Zealand has a modern, cost-effective business regime; and it would reduce wastage. IT Capital says it took a group of five people about five hours to put the information in envelopes and they had to use a truck to get the boxes to the post office.
IT Capital shareholders recently approved plans to restructure the company into a venture capital firm, paving the way for it to begin investing in Australasian high-tech projects, with the intention of developing and then spring-boarding them into larger overseas capital markets. Shareholders also approved the issue of 40 million new shares. This placement has been fully underwritten and subscribed to by professional investors, at an issue price of 7 cents per share. The placement does not include any rights that existing shareholders will have, under the restructuring proposal, to most of the existing company assets.