Shareholder stays with PGC despite concerns

A shareholder in Pyne Gould Corporation says he plans to stick with the company despite the resignation of its auditor and active engagement from the regulator over concerns about related party transactions.

Reese Hart, a former chairman of meat co-operative Silver Fern Farms, said he had been shocked by the resignation of KPMG and said the response by chairman Bryan Mogridge had been inadequate.

KPMG resigned last Tuesday over a difference of opinion with Pyne Gould Corp concerning related party transactions, adequacy of governance and management of financial reporting.

Mogridge told shareholders in a letter on Friday that the company rejected the claims and was looking for another auditor.

But Hart questioned how that would solve the issues.

"The company is saying they will simply get another auditing firm. But they will be staring at the same set of circumstances."

Hart said he and other small shareholders had been critical of the board and chairman for some time.

It also emerged last week that investment watchdog the Financial Markets Authority had been in talks with the company over the past two weeks following concerns raised by the NZX.

Mogridge told shareholders that Pyne Gould had "nothing to hide" and said the company was not concerned by the FMA's presence.

Hart said he welcomed the regulator's moves.

"I think it is a good thing as any issues will then come out into the open."

Pyne Gould Corp shares closed on 33c yesterday.