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- Agria says ousting the chair and deputy was a move to "refresh the board"
- The pair were ousted without any warning
- PGW appoints former director John Nichol as independent chair
One of the chief architects behind the ousting of PGG Wrightson's (PGW) chair and deputy says their sudden removal was a move to "refresh the board".
The two largest foreign shareholders in the agricultural services company joined forces to dump independent chair Garry Moore and independent deputy chair Sarah Brown earlier this week.
The move by Chinese-owned Agria Corporation and Australian-owned Elders came without prior warning, leaving the ousted directors stunned.
In a statement to the NZX on Thursday, Alan Lai, on behalf of Agria, appeared to downplay the move.
"We view the recent developments as an opportunity to refresh the board, with a focus on driving improvement and enhancing shareholder value," he said.
"Agria remains committed to its long-term investment in PGW and will continue to support the company, its board, and management in our efforts to increase the value of our investment."
Lai was previously banned by US authorities from involvement in public companies for five years over market manipulation of Agria shares. Agria shares were once listed on the New York Stock Exchange, with the company found to have engaged in what the US Securities and Exchange Commission called fraudulent accounting.
The US action led to New Zealand authorities taking court action for breaches of character rules required of foreign investors.
The PGW board has, in the meantime, voted for John Nichol as independent chair of the company to replace Moore.
Nichol previously served as a director and audit committee member of PGW from October 2013 to April 2019.
Nichol said he was "delighted" to rejoin the company.
"The PGW board remains committed to maintaining transparency and strong governance practices," he said.
"We will continue to engage constructively with all shareholders and stakeholders to ensure confidence in the company's governance and strategic direction."
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