Thursday 26 June 2014

Need to clarify the base for calculating 50/ 80% required for Priority Access

The Irish Farmers Journal has reported today that the qualified majority of shareholders required for priority access to GLAS will be 50/80% out of the total number of shareholders and not out of the active shareholders. If true this is true then it is a recipe for failure. As the average dormancy rate on Irish Commonages is approx. 35%, it is certain that the 80% agreement for priority access will be unattainable in almost all cases. The lower threshold of 50% could still be reached but in most commonages it would require almost unanimous support among the active shareholders.  The lack of clarity on this and other issues means that GLAS is getting off to a very poor start.

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