Martin Jetpack votes to allow overseas board members

Martin Jetpack is removing a rule requiring directors to be New Zealand based. Photo/supplied

Kiwi jetpack business Martin Aircraft Company will allow more overseas directors on to its board after a special shareholder meeting last week.

The meeting was called at the request of KuangChi Science (KCS), which has a 52 per cent stake in the company, to remove a restriction requiring the majority of directors of the company to be from New Zealand.

Martin Aircraft chairman Jon Mayson said that aside from NZX-listed companies, it was not usually a requirement for New Zealand companies to have more than one director who lived in the country.

"The proposed amendment is not inconsistent with usual practice for New Zealand companies," Mayson said.

"KCS considers that the company needs to have the freedom to secure the best directors available to continue to foster the company's status as [one] with global investors and aspirations."

Mayson said the amendment would allow for more flexibility in finding global talent for the company's board.

The meeting was held at Aircraft's base in Christchurch where the change was supported by 87 per cent of those who voted.

The change means that all directors of the company could be from out of New Zealand.

The company said last month that Martin Aircraft only had operating funds to the end of August, and would require further funding to complete its test programme and to find commercial opportunities.

In a statement to the ASX, Martin Aircraft said it had assumed that where required, it would be able to use cash from KCS, however, it had since discovered this funding was tied up and would not be available.

"The company is investigating further options to secure these funds," it said. KCS has yet to announce if, and when, it would provide further funding.

Martin Aircraft listed on the Australian Stock Exchange two years ago hoping the move would bring in new investors.

Since it listed, its share price has fallen from A$1.75 in March 2015 to A5c a share today.

Commercialisation of the Martin Jetpack began in 1998 by its inventor Glenn Martin who has since cut ties with the company.