Victorian dairy cooperative, Murray Goulburn has decided to scrap its A class preference shares following a general meeting late last week.
MG chairman, Philip Tracy said in a letter to shareholders that the A class shares represented an ‘old class of share’ and that both he and the board were pleased that the majority of both ordinary, and A class shareholders supported the decision to vote in favour of the resolution, The Weekly Times reports.
“The A Class Preference Shares consisted of mainly very small shareholdings, 20 per cent of which we have been unable to contact and was an old class of share that has been closed to new shareholders for more than a decade,” said Tracy.
“In these circumstances, the board’s view was that a cancellation of the A Class preference shares was the right way forward and represented the best outcome for both A class preference shareholders and our current supplier/shareholders.”
According to MG, A class shareholders will receive $1.25 per share which should be paid by the end of the month.