CAPITAL STRUCTURE CONSULTATION 2021
7. Glossary
IN THIS BOOKLET:
Aggregate Threshold
means the threshold set out in the Constitution for dry shares as a proportion of total shares on issue, being 15%
Board
means the board of directors of Fonterra
Constitution
means Fonterra’s constitution, as amended from time to time
Co-op, Co-operative or Fonterra
means Fonterra Co-operative Group Limited means Fonterra Farmer Custodian Limited means the Dairy Industry Restructuring Act 2001
Custodian
DIRA
Dry share
means a share held by a farmer owner in excess of the number of shares determined in accordance with the Share Standard for the season means the rights to receive dividends and other economic benefits derived from a share held by the Custodian for the benefit of the trustee of the Fund
Economic rights
Farmer owner
means a shareholder in the Co-op
FSF or Fund
means the Fonterra Shareholders’ Fund means the Fonterra Shareholders’ Market
FSM
kgMS
means kilogram of milksolids
Market maker
means the registered volume provider who is active in making bids and offers on a minimum number of shares in the FSM means the current contract supply option without any requirement to purchase shares, available to farmers who meet the relevant criteria means the limit set out in the Constitution on the size of the Fund, being 20% of the total shares on issue means any share that is not required to be held to meet the relevant Share Standard
MyMilk contract
Overall Limit
Non-compulsory share
Share
means a co-operative share in Fonterra
Share standard
means the number of shares a farmer owner is required from time to time to hold as determined in accordance with clause 3.4 of the Constitution means the contract options to supply Fonterra on the basis that shares are purchased over time, including strike price contract options
Share-Up Over Time
TAF
means Trading Among Farmers
Temporary Cap
means the temporary cap on the size of the Fund that has been put in place in order to consult as set out in this booklet by suspending the ability for the economic rights of dry shares to be sold into the FSF means a share held by a farmer owner which is required to be held in accordance with the Share Standard for the season
Wet share
Unit
means a unit issued by the FSF
Voucher
means a certificate referred to in clause 3.4 of the Constitution that was provided to a farmer owner on the transfer of the economic rights of a wet share to the Fund under the 2012 and 2013 supply offers to farmer owners, and that can be used by the farmer owner together with shares, to meet the Share Standard.
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