A quick overview of Permitted Transferees
If you’ve ceased in the last year, you can apply to transfer some of your shares to your Permitted Transferee(s). This is a new type of shareholder under Flexible Shareholding.
Permitted Transferees are your relatives, any entity or trust controlled by you or your relatives or, if you are an entity or trust, persons who have a sufficient level of ownership or control interest in you.
You can apply to transfer shares to a Permitted Transferee before the end of the first complete season after your cease application is accepted and becomes effective.
Each initial transfer to a Permitted Transferee must be for at least 20% of the shares held by you when your cease application was accepted. Following the initial transfer, no further shares can be acquired by the Permitted Transferee (they can only be disposed of) – unless you make a further application within the timeframe which is accepted by the Co-op.
Permitted Transferees do not have voting rights given they do not supply milk to Fonterra. Voting rights remain the same as the previous capital structure, based on milk supply backed by shares.
See the graphic below for more details.