Numbers growing in bid to change Timbercorp RE

The committee representing Timbercorp growers now say they have the numbers to call a meeting to change the responsible entity (RE).

Kerree Bezencon from Siger Super Services told Money Management the group, called AAGRI, now has about 9000 investors, out of a total of 18,000, who have signed up to force a change.

“We have been able to galvanise the growers through their advisers,” she said.

“We have been getting good responses from the advisers but have not had one single dealer group approach us wanting to help their clients.

“We also haven’t heard from the FPA [Financial Planning Association] either.”

Currently, the RE is insolvent and administrator Korda Mentha is trying to wind up a number of the schemes in the Melbourne Supreme Court, a move that is being vigorously opposed by the schemes’ advisers and investors.

“We have got the numbers now to call for an investors meeting to appoint a new RE,” she said.

The group needed 5 per cent of the scheme investors to call the meeting and then 50 per cent of those attending a meeting to agree to a change.

Bezencon said Korda Mentha had indicated in a court hearing on Wednesday that there were six potential REs, including Gunns, Primary Securities and Rewards Group.

“We have the option of calling a meeting or we can apply to the courts for a temporary RE,” she said.

“We are still looking at both options, but for expediency we might go to court.”

Bezencon said the group was now setting up phone contacts in each state to attract more investors to the group.

“The more people involved, the better end result for the investors,” she said.

“We still want to hear from investors who haven’t contacted us as this is a numbers game.”

Bezencon said she hopes the final outcome will see a better system developed to protect investors when the RE becomes insolvent.

“I hope at the end of all of this we get a better model for managed investment schemes,” she said.