Kiwifruit growers are being reminded of a Zespri proxy vote scandal ahead of its AGM on Wednesday because the board member at the centre of the scandal is again standing for a seat on the board.

Former board chairman Craig Greenlees has been acknowledged by Zespri to have received information about proxy votes 24 hours before the 2008 AGM.

He's among three board members standing down by rotation, but he is standing for re-election.

His is the only re-election that is opposed. Martyn Brick is also standing for the seat.

Kiwifruit grower Chris Dunn says allegations being circulated to shareholders by David Sher concern him greatly.

'We knew the proxies had been opened on many occasions, the issue was supposed to have been dealt with,” says Chris.

Chris is a kiwifruit grower in Te Puke with orchards and managing properties for clients. He's a supplier to Zespri, but he's not a Zespri shareholder so he cannot vote.

'I am forced to sell my kiwifruit though Zespri by NZ law, meaning I have to do business with them,” says Chris.

'I have grave concerns as to the allegations regarding Zespri director Craig Greenlees and other directors which this letter suggests have endorsed this behaviour.”

He took his concerns to NZ Kiwifruit Growers Incorporated and was told it was not a concern and growers can vote accordingly.

'This is fine if you are a shareholder and if you could show your disapproval by either selling shares if you have them, or avoiding the company altogether.

'There's a lot of us that haven't got shares in the industry – we are just being used as pawns for a few people's gain.”

About 30 per cent of kiwifruit growers are not shareholders and cannot vote, says Chris.

'Zespri gets portrayed as cooperative but it's not really,” says Chris.

There's a lot of people that are over subscribed too, so they have a lot more shares than they should have compared to their production. So they obviously have more control, it becomes a very one sided argument.

'I have no say in Zespri at all. They say they take so much per cent as commission, but no-one gets to see what their charges are for their services.

'That percentage comes out after all costs, but we don't know what those costs are because the company is not transparent.

'It's very hard when you are forced to work with an organisation that you think is not right – that's not playing by the rules.”

NZKGI president Peter Ombler says at the time it did not approve of directors having access to proxy vote information before the annual meeting. They took independent advice and steps were taken to ensure it did not happen again.

'We don't think what happened was right, but we are comfortable that it won't happen again,” says Peter.

'It's history now, it's been dealt with and we don't see the point in investing more energy in the subject.

'There's been steps taken to rectify the situation. We don't see it happening again. It's a historical incident, let's put it behind us and get on with life.”

This is a historic issue dating back to 2008, says Zespri spokesman David Courtenay.

It was dealt with in an open manner at the time and a number of steps were taken to stop it happening again. Zespri has had independent confirmation via statutory declaration from our share registrar that this issue has not happened since 2008.

Shareholders were first told about this in 2008 and have been communicated with on the issue in 2008, 2009 and 2010 through annual reports, AGMs, newsletters and notice of meetings.

- The incident was investigated by the board in 2008 and it was found that although the action was not contrary to the Companies Act 1993 or company constitution it was in contravention of a confidentiality agreement between Zespri and its share registrar.

- Shareholders were made aware of the incident and the steps taken to resolve it through various communications (for example annual reports, AGMs, newsletters) on a number of occasions in 2008, 2009 and 2010.

- In 2009 clauses were added to the Zespri Group constitution to ensure that no voting or proxy information is received by directors or employees prior to the shareholder meeting, and that individual voting preferences are not available to directors after any such meeting.

- Prior to subsequent annual general meetings a statutory declaration has been made by Zespri's share registrar to confirm that no voting or proxy information has been made available in line with the confidentiality agreement.

- Significant time and cost has been devoted to resolving this issue and Zespri's focus is now firmly on other issues, which will be productive in putting money in grower's pockets.