4 May 2006
CC V FONTERRA CO-OP GROUP LTD CA CA175/05
- Citation
- openlaw-244749cd_e8c7_45e2_88f2_fab4176afb90.pdf
- Court
- Court of Appeal
The Court held that reg 9(1) must be read to require the discount rate to be the same as the 'cost of capital rate' actually used to calculate the co-operative share price (which may be a WACC as used by the independent valuer), so the Commission's challenge on that point failed; however the Court allowed the Commission's appeal on the retention issue, holding that for calculating the wholesale milk price in a season 'total payout' means the total payout from profits in that season and does not include payments to supplier shareholders out of reserves.