Queenstown Airport’s under-fire chairman Mark Taylor admits council control of the airport changes if any further stake is sold.
Auckland International Airport, which has bought a 24.99 per cent share for $27.7 million, has the option to increase that to 35 per cent.
Taylor says if majority shareholder Queenstown Lakes District Council doesn’t want Auckland’s share to increase, his board won’t proceed with the option.
“We would not defy the council’s position on the further shareholding above 24.99 per cent.
“We made that decision because if council’s shareholding falls below 75 per cent the nature of their control changes pursuant to the Companies Act. With 75 per cent you can vote in anything you like.”
A shareholder with more than a 25 per cent stake has the ability to block major transaction resolutions, Taylor says.
“It was only appropriate council made those decisions.”