TECT consumers rightly questioning the wind-up proposal floated by TECT trustees need only go to the TECT website where they will find spelt out in plain English under ‘Overview’ what TECT trustees obligations are to consumers, namely: ‘TECT’s income and capital is to be used to provide benefits to consumers during the term of the Trust.’ TECT trustees, who seemingly have lost confidence in Trustpower, currently want to wind up the Trust, pay out consumers only a fraction of the value, then snaffle the balance of the assets for a charitable trust.
Trustees have clearly lost their sense of perspective about what their duties are and what the consumer trust is all about, wanting to become benefactors for community projects of their choosing using other people’s (TECT beneficiaries) assets. Check out the 1993 TECT Trust Deed on Winding Up - Clauses 5, 6(2) and 14(4) as these are rather revealing.
It is also worth reading Brian Gaynor’s (Milford Asset Management) excellent weekend assessment of the historical position. The only logical conclusion to be reached is that if the trust is fully wound up then the entire proceeds of all assets must be paid out in full to 56,000 TECT consumers immediately, amounting to about $14,000 each.
The current proposal should be vigorously opposed and rejected and the question asked, how can anyone have faith in the current trustees?
R Paterson, Matapihi.