Forget it folks. One glaring example - the Chair of the select committee didn’t appear to know anything about subsidiary companies. Even in spite of the fact that it is in large part stepped out in the Bill.
Subsidiary
Companies are stand alone companies with their own constitution’s and decision
making.
Yes, there
are obligations back to the parent company, but tenuous at best. Given the
potential makeup of the parent company, the ensuing separate governing board
for a subsidiary plus separate constitution, and the parent company
representatives that may be on the governing board, (often small in number)
there is no real protection. The ‘shareholders of the subsidiary may well only
be company representatives and not actually be the same shareholders of the
parent company.
Look at
Fonterra and its construct to understand the model and the disenfranchisement
of shareholders with the various arms of the companies built on the hard
working backs of our food producers.
So why the
concern? The original assets and infrastructure, what we have now, begin in the
parent company. New infrastructure and assets can be established via a
subsidiary. The subsidiary, in the interests of the company of course, can own,
sell or dispose of those assets as it decides.
Only by
ensuring consumers as shareholders via parent company shareholding
representatives are shareholders of ANY subsidiary, is there continued
shareholder ownership and accountability.
Sandra Goudie is a retired Mayor and former
Member of Parliament.
1 comment:
I suspect the degree of applcation to most Select Committees is minimal. The requird outcome is known, the summarising staff work to this so the govt members need take little interest.To thoroughly understand the proposed legislation and and all or many submissiosns would in most cases require days and weeks of thankless work. The Select Committee procedure is just a ritual to hopefully turn up any glaring anomolies likely to lead to rioting. It is very dispiriting to those who spend days (all unpaid) compiling carefully thought out submissions.
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