The Queenstown Lakes District Council will hold an extraordinary meeting next Monday to discuss the Queenstown Airport shares sale, but it will not be open to the public.
In a press release last night, council chief executive Debra Lawson said the council would discuss legal proceedings in connection with issuing the shares.
The notice of meeting said its purpose was "to discuss the consultation process to be undertaken in relation to the second tranche of shares for Queenstown Airport Corporation".
This follows the strategic alliance announced last month between the Queenstown Airport Corporation and Auckland International Airport Ltd.
Auckland Airport, which bought a 24.9% shareholding for $27.7 million, is seeking to increase that to between 30% and 35%.
The council has previously stated it would not begin the consultation process associated with this until after local body elections in October.
However, last week legal proceedings were issued against the council, the QAC and the AIAL in the High Court at Invercargill by Air New Zealand and the Queenstown Community Strategic Asset Group.
Both parties sought an injunction on any further shares being issued to Auckland Airport.
Ms Lawson said she would be seeking resolutions from elected members "as to how to proceed regarding the legal proceedings".
"The [public-excluded] meeting will allow free and frank discussion about how the organisation will proceed in these legal matters."
The reason given under the Local Government Act for holding the meeting with the public excluded was the legal proceedings and the fact "the public conduct of the whole or relevant part of the meeting would be likely to result in the disclosure of information where the withholding of information is necessary to maintain legal or professional privilege".
