Only one? Don’t apply?

LETTER

Re: Appointment of ECT trustees for 2018-2021.

The advertisement in the public notices May 19, calling for nominations for a “single position” on the Board of Trustees of our $481 million electricity community trust fund needs public explanation. Especially the comment, “the retiring trustee has indicated their desire to re-apply and Council supports this decision”. It suggests a predetermination made before applications were called, let alone considered, plus a decision that only one trustee is required to retire on rotation when the actual number is two.

Winston Moreton

Footnote response from Gisborne District Council chief executive Nedine Thatcher Swann:

Council’s policy requires council to consider whether to support or not support an existing trustee if they express a desire to re-apply for a trustee position. This is a preliminary step in the process. The next step is to advertise for applicants, as required by the Trust Deed. Council felt it was fairest to advise that the incumbent has indicated a desire to re-apply and the council supports that decision, but of course will consider all applicants.

In regards to only having one trustee retiring this year, this is due to having three trustees come up for retirement last year. There were three in 2017 because ECT seconded Te Rau Kupenga on to the trust mid-term (sometime in 2016/2017) when Mataanuku Mahuika stepped down from ECT to become an Eastland Group director. Because Mr Kupenga was seconded on mid-term, he had to come up for “election” at the next selection cycle as per the Trust Deed. So he was re-appointed in 2017 with two new trustees appointed as well.

Next year John Clarke and Michael Muir will come up, and we will be back to the two trustees per year cycle.

Re: Appointment of ECT trustees for 2018-2021.

The advertisement in the public notices May 19, calling for nominations for a “single position” on the Board of Trustees of our $481 million electricity community trust fund needs public explanation. Especially the comment, “the retiring trustee has indicated their desire to re-apply and Council supports this decision”. It suggests a predetermination made before applications were called, let alone considered, plus a decision that only one trustee is required to retire on rotation when the actual number is two.

Winston Moreton

Footnote response from Gisborne District Council chief executive Nedine Thatcher Swann:

Council’s policy requires council to consider whether to support or not support an existing trustee if they express a desire to re-apply for a trustee position. This is a preliminary step in the process. The next step is to advertise for applicants, as required by the Trust Deed. Council felt it was fairest to advise that the incumbent has indicated a desire to re-apply and the council supports that decision, but of course will consider all applicants.

In regards to only having one trustee retiring this year, this is due to having three trustees come up for retirement last year. There were three in 2017 because ECT seconded Te Rau Kupenga on to the trust mid-term (sometime in 2016/2017) when Mataanuku Mahuika stepped down from ECT to become an Eastland Group director. Because Mr Kupenga was seconded on mid-term, he had to come up for “election” at the next selection cycle as per the Trust Deed. So he was re-appointed in 2017 with two new trustees appointed as well.

Next year John Clarke and Michael Muir will come up, and we will be back to the two trustees per year cycle.

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Winston Moreton - 26 days ago
Oh Dear. In response to the Council Chief Executive's reply to my letter (TGH 29/5). The terms of para 11 of the ECT Deed of Trust are well drafted and straightforward. It states, "one-third of trustees must retire from office" in each year. One-third of trustees equates to two. With respect, what happened last year is irrelevant. Council should be looking for two retirees and two appointments, not one.

Footnote from Ed:
Clause 11.1 in the Eastland Community Trust deed goes on to say: ?A Trustee must not retire under this sub-clause until that Trustee has been in office for three years since that Trustee?s last appointment.?
With this only applying to one trustee, the new chairman Paul Reynolds, he is the sole trustee due to retire by rotation this year.
As stated yesterday, John Clarke and Michael Muir will retire by rotation next year. The following year three trustees ? Jill Chrisp, Ailsa Cuthbert and Te Rau Kupenga ? will have served three years and the trustees will have to decide which two retire by rotation; the third would retire the following year along with Dr Reynolds (or his replacement) and the trust will be back to a clear sequence of two retirements a year.

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