SUVA, Fiji, March 29, 2012 /PRNewswire-USNewswire/ -- Republic of Fiji Attorney-General and Minister for Civil Aviation Aiyaz Sayed-Khaiyum released the following statement today in response to Qantas:
Qantas' assertion that it does not have veto or supermajority power over key business decisions at Air Pacific is patently false and misleading.
For actions pertaining to 19 areas of operations, including the following, by Air Pacific or any of its subsidiaries there requires the approval of two thirds of the directors (six of the nine directors).
- Adoption of the company's budget
- Entry into any major commercial or joint venture agreement
- Any major variations to air service schedules
- Commencement of any new air routes
- Appointment of the chairman and any deputy chairman
- Appointment of the managing director
- Granting of any mortgages
- Employee incentive schemes
Furthermore, so long as Qantas holds more than 40% of all the voting shares in Air Pacific, Qantas directors must constitute more than one third of the directors present at the meeting for there to be quorum in respect to any of the aforementioned actions (at least two of six directors).
These stipulations are in place notwithstanding the fact that the Fijian Government owns 51% of shares and appoints five of the nine directors.
Attached for reference are the related articles of association.
SOURCE Republic of Fiji