A shareholder, who asked not to be named, said he was one of more than 50 who had not had a dividend in nine years, had seen their investment eroded, and were angry there was provision for the three founding shareholders to share a $10 million earn-out this year.
An earn-out is a payment written into a contract that is received once agreed financial targets have been met. It would be shared between John Penno, Juliet Mclean and Ben Dingle, the shareholder said.
He said shareholders did not get to vote on this year's buy-out of 51% of Dunsandel-based Synlait Milk by Chinese dairy company Bright Dairy.
It was a significant transaction, but Synlait got around it by completing the transaction with its subsidiary Synlait Milk.
"We've lost 51% of the jewel in the crown," he said.
The $82 million invested by Bright Dairy was by the issue of new shares in Synlait Milk, so shareholders in the parent company, Synlait Ltd, did not receive any funds.
The shareholder said there were few buyers for Synlait Ltd shares, evident by his inability to quit some of his.
According to the Synlait website, there have been 17 transactions each of ordinary shares and preference shares this year, at $1.50 a share to $2.99.
The shareholder said shareholders felt directors were not doing enough to grow shareholder wealth.
He said the company's value had been slashed in the past two years, after losses of $42 million and $7 to $8 million this year, while a deal to end a water rights dispute with Central Plains Irrigation had reduced the value of those rights.
Shareholders were becoming increasingly frustrated and would voice that anger at this afternoon's annual meeting.
Managing director John Penno said these issues had been well canvassed with shareholders, although he accepted the financial situation of some meant they had different concerns.
The earn-out being paid to founding directors had been extensively publicised among shareholders, he said.
