Ron Brierley hits out at Gibbs' 'phoney' claim

Guinness Peat Group's former chairman Sir Ron Brierley Photo / Greg Bowker

Guinness Peat Group director Sir Ron Brierley has hit out at a claim made by former director Tony Gibbs that he advocated for the company's annual general meeting to be held in New Zealand calling it "phoney".

Gibbs, who was booted off the board of GPG last year for disagreeing with its plans to split up the business, welcomed GPG's announcement on Friday that it would sell down most of its assets and return capital to investors.

Gibbs also told the Herald he was pleased the board had decided to hold its AGM in New Zealand in June as it was something he had advocated for.

Gibbs' comments about the AGM angered the New Zealand Shareholders Association and chairman John Hawkins posted a letter on its website stating that the only offer Gibbs had made was to hold a "briefing meeting" in New Zealand.

"Tony, you know and I can prove it, that the only offer you made was to hold a briefing meeting (not an AGM) including some of the GPG directors if they would come, or on your own if not.

"In fact you were part of a board that consistently claimed for years that the AGM could not be held in NZ for legal reasons - though given what has now happened, it would seem that no legal advice was ever sought on the matter," Hawkins wrote.

In an unusual move Brierley has spoken out through an email agreeing with the association.

"...you are quite right regarding Tony Gibbs' phoney claim that he advocated holding a GPG AGM in New Zealand.

"He was a member of my board which ananimously and consistently resisted holding the AGM in New Zealand."

Brierley said the reasons for not holding the meeting in New Zealand were "purely commonsense and practical economics."

"There was no legal reason. GPG is a UK incorporated company, its head office and administrative functions are in London and its AGM should sensibly be held at a nearby location.

"Moving the whole circus to Ruatoria or Invercargill or wherever in New Zealand, will cost at least NZ$500,000 quite apart from considerable staff disruption. For what? So a few show ponies can strut their stage for a short while?"

Brierley went on to add that he feared GPG was "entering a period of increasing madness."

Letter from Sir Ron Brierley:

Hi, John

It is not often I agree with claims by The New Zealand Shareholders Association.

I regard NZSA as a group of otherwise anonymous corporate busybodies, desperately seeking their 15 minutes of fame (ie cheap attention).

Notwithstanding, your home page would bring tears to the eyes of the flintiest of corporate raiders !

However, you are quite right regarding Tony Gibbs' phoney claim that he advocated holding a GPG AGM in New Zealand.

He was a member of my Board which unanimously and consistently resisted holding the AGM in New Zealand.

There was no legal reason it was purely commonsense and practical economics.

GPG is a UK incorporated company, its head office and administrative functions are in London and its AGM should sensibly be held at a nearby location.

Moving the whole circus to Ruatoria or Invercargill or wherever in New Zealand, will cost at least NZ$500,000 quite apart from considerable staff disruption.

For what ? So a few show ponies can strut their stage for a short while ?

I fear we are entering a period of increasing madness at GPG I will have more to say in coming weeks and months.

Please feel free to place this letter on your website.

Regards

Ron Brierley