Non Diversification - Regulation 11

1.  ZGL must not carry out any activities that are not core business and do not support the core business unless -

  1. ZGL has carried out a process in which all producers have been - 
    1. informed of the proposed activities; and
    2. asked to agree the vote to ZGL carrying out the proposed activities; and
  2. the following results were obtained from the process:
    1. at least 75% of the producers voting on the question agree; and
    2. the production of the producers (who agreed in the voting) was, on average, at least 75% of the kiwifruit supplied to ZGL over the previous 2 consecutive seasons by all producers who voted on the question; and
  3. ZGL has minimised, as far as is reasonably practicable, the risks (arising from carrying out the proposed activities) for the producers who have not agreed (whether or not those producers voted).

2.  For the purposes of the voting referred to in subclause (1)(a)(ii), each producer is entitled to 1 vote per producer entity (for example, a partnership with 10 partners is entitled to 1 vote).

3.  For the purposes of subclause (1)(b)(ii), the production of producers who voted must be calculated in accordance with the following:

  1. kiwifruit that is produced is calculated in kilograms:
  2. each kilogram of kiwifruit is only counted once:
  3. if the land on which the kiwifruit is produced is under a lease of at least 1 year's duration, the kiwifruit produced on that land is counted as being from the producer who owns the land unless, before the voting under subclause (1), the producer allocates the production to the lessee.

4.  See regulation 10A.