Shareholder dumps Ports chairman

Ports of Auckland sole shareholder Auckland Regional Holdings has ditched the company's chairman Gary Judd calling him "unhelpful".

Judd - chairman since 2006 - said in a statement he had been telephoned by the port on Thursday and told the company had received a letter from Auckland Regional Holdings (ARH) removing him as a director.

"I have had no personal communication from ARH advising me of its decision to remove me as a director," Judd said.

"In the absence of any explanation, I can only speculate that in fulfilling my governance responsibilities I have given the shareholder information and advice it did not wish to receive."

Judd said he received a letter on May 1 from ARH - the business arm of Auckland Regional Council - requiring him resign by the end of the month.

"The reason given was that, 'the ARH board has found your approach unhelpful and you have not sufficiently understood the needs of ARH as a shareholder/investor'."

"On May 6 I replied indicating resignation was a voluntary act, that ARH was not permitted to require me to resign and that I would not be resigning at that time. I asked for an explanation of what ARH meant by the reasons given by ARH. No explanation has been received."

Judd, confirmed yesterday that as sole shareholder ARH had the power to remove him.

"My speculation is as reported in the press release and I'm not prepared to go further than that," he said.

Auckland Regional Holdings chairwoman Judith Bassett said: "I don't think I can say any more except that as shareholder it was very important for ARH to be able to clearly understand just how and when over time ports earnings might improve, that's all."

"There was a communication problem, I mean that is clear from Gary's press statement when I said that we found his approach to be unhelpful."

Revenue at Ports of Auckland for the six months ended December 31 was up 3.7 per cent at $88.4 million, although net profit fell to $9.3 million from $12.6 million the previous year, which had included a one-off $1.5 million tax credit.

A full capital structure review of the company was underway, which was expected to be completed by the first quarter of next financial year.

There was no hidden specific reason for the removal of Judd, with whom Bassett had a long-standing friendship which made the decision more difficult, she said.

"But it was an ARH decision and I was part of that, it was a unanimous decision."

An ARH statement said on Thursday the chair and deputy chairman of ARH visited the chambers of Judd, who has been a Queen's Counsel since 1995, to give him the information personally but he was absent.

Current Ports of Auckland deputy chairman John Lindsay would become the acting chairman until the board elected a new chairman.

Lindsay was also chairman of Holcim New Zealand, America's Cup Village, the New Zealand Chambers of Commerce and Industry and the Auckland Regional Chamber of Commerce and Industry.

The Herald understands no other directors of Ports of Auckland have been removed or have resigned.