Page 55 - NZPM Annual Report 2017

The Group has five classes of shares. Each class has different rights attached.

(a) Ordinary shares

Ordinary shares may be surrendered at the option of the shareholder, directors or Group according to the
Constitution at the nominal value of $1 per fully paid share. Consideration for the surrender is subject to the
directors’ right to postpone payment for up to five years. Ordinary shares carry certain rights as to voting and
rebate dividends.

(b) Development shares
Development shares were issued to ordinary shareholders from April 2012 until January 2016. The
development share requirement was 5,000 shares of $1 per share. In January 2016, NZPM amended
the development share requirement to nil and resolved to allow existing shareholders to redeem their
development shares for cash and cancel any unpaid portion of their development shares. Development
shares carry no voting rights (except as required by section 117 of the Companies Act 1993), or rights to
rebate dividends. As at 31 March 2017, the dividend rate was 5.4% (2016: 7.5%).

(c) Redeemable preference shares

NZPM has issued various classes of redeemable preference shares. Redeemable preference shares issued
at different times and with different terms each constitute a separate class of redeemable preference shares.
Redeemable preference shares are redeemable at the option of the shareholder at the nominal value of $1
per share. Redeemable preference shares carry certain rights to receive dividends. Redeemable preference
shares carry no voting rights (except as required by section 117 of the Companies Act 1993) or rights to
rebate dividends. The directors are able to postpone repayment. As at 31 March 2017, the dividend on call
rate was 6.25% (2016: 7.0%).

(d) 2014 Redeemable preference rebate shares ( 2014 rebate shares)
The 2014 rebate shares were a class of redeemable preference shares in the capital of NZPM with a nominal
value of $1 per share. On 7 June 2016 the company resolved to redeem the 2014 rebate shares for cash
payment on or about 1 August 2016. This required the approval of individual shareholders. Payment was
made on 4 August 2016.

(e) 2015 Redeemable preference rebate shares ( 2015 rebate shares)
The 2015 rebate shares were a class of redeemable preference shares in the capital of NZPM with a nominal
value of $1 per share. On 30 September 2016, (first anniversary of their issue date), one third of the 2015
rebate shares were converted into new redeemable preference shares. The second and third conversions
were redeemed early for cash payment and required the approval of the individual shareholders. Payment
was made on 29 March 2017.

(f) General
All shares carry equal rights on any winding up of NZPM to be repaid the paid up capital, in proportion to
the capital paid up on each share. Each ordinary share and development share also carries the further right
to share equally in the distribution of any further residual assets of NZPM following repayment of the paid-up
capital. The Constitution and the Companies Act 1993 gives the directors the discretion to pay different rates
of dividend, (if any), to different classes of shares. All share capital is classified as a liability as it is redeemable
on a specific date or at the option of the shareholders.

53