Clearing the decks at Mighty River

Instead of having to fight a rearguard action and defending its directors, boards appear to be moving pre-emptively to improve their attractiveness to investors.

As reported in Friday's "new-look" National Business Review, activist institutions wielding lists of blacklisted directors are prompting nervous companies to clear their decks before attempting capital raisings.

A flurry of board changes at Snakk Media, which plans to seek a compliance listing on the NZX alternative market, have all the hallmarks of this, as it cuts ties with directors and shareholders associated with controversial company SeaDragon, a major Snakk shareholder.

Maybe the resignation of Mighty River Power director Jon Hartley, who will step down later this month, is the start of a similar process at the state-owned enterprise, which is first on the block for partial sale in the government's stuttering mixed ownership model.

Mr Hartley is a former chief executive of Brierley Investments, who left in 1999 after the rationalisation of the group's New Zealand's assets. He jumped ship to loss-making state-owned enterprise Solid Energy and left shortly after, following a strategic review.

He went on to chair Sky City Entertainment Group, now SkyCity, and joined Pacific Road Corporate Finance as a director.

He is currently a director of ASB Bank, Chorus and Sovereign Assurance Company.

High regard

There's no suggestion Mr Hartley is on any directors' blacklist.

He says he has commitments with World Vision International and its micro-finance subsidiary, VisionFund International, of which he is vice-chairman.

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Clearing the decks at Mighty River