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FNZ's employee shareholders land initial legal blow in share dilution battle
This is a significant win for the employee shareholders, who allege that conflicted Directors deliberately transferred wealth away from them to the same institutional and private equity investors they represent.
Despite these attempts of procedural legal challenges, the employee shareholders remain undeterred:
"We foresaw this strategy and are well prepared for FNZ doing everything in their power to prevent this from going to the High Court – including trying to bury it in technical minutiae. Seven memoranda and two affidavits later, the case has not been stayed as sought by FNZ and we hope to get back to the merits under the New Zealand Companies Act 1993, which protects minority shareholders.
"This is not a game of technicalities. It is a case about directors' duties, oppressive conduct and a deliberate transfer of value. And a snowstorm of memoranda is not a defence; it is an attempt to stop the merits being heard. It could even be seen as an admission that those merits will cause them a problem.
"These developments represent another step towards justice," an employee shareholder spokesperson said.
Hundreds of Class B employee shareholders have now joined the class action, and with further legal success, the case may expand to include other employee shareholders, which could see thousands of employees take action against FNZ.
View original content:https://www.prnewswire.co.uk/news-releases/fnzs-employee-shareholders-land-initial-legal-blow-in-share-dilution-battle-302539980.html