The company's shareholders meet in early June to select a new board. Photo: Supplied
The NZX Takeovers Panel has cleared James Grenon of breaching the Takeovers Code when he bought shares in NZME.
It held a meeting last month to consider whether he had broken the rules around share purchases by significant shareholders.
Grenon had been working to remove some or all directors of NZME and replace them.
The panel was considering at the time whether he was associated with NZME's biggest shareholder Spheria Asset Management, with 14.946 percent of the shares.
Shareholders who own, or have associates who own, more than 20 percent of a company's stock have to give all shareholders the opportunity to participate in a control-change transaction.
Grenon bought further shares in NZME in March, shortly before he wrote to the company about his plans to remove directors and replace them.
The Takeovers Panel said it initially decided there was a reasonable possibility Grenon was already associated with Spheria and a smaller shareholder, Caniwi, with 1.674 percent, at the time of the purchase in March.
James Grenon. Photo: TOM Capital Management
It asked whether he would sell the shares within six months, not exercise the voting rights and ensure his public statements reflected those voting restrictions.
He responded that he would not.
An April meeting was held where it was decided his acquisition did not breach the rules.
The panel said it had heard evidence and was now satisfied that when he bought the shares, Grenon was an associate of Caniwi but not Spheria.
"Accordingly, after the acquisitions, Mr Grenon, together with his associates, did not hold or control more than 20 percent of the voting rights in NZME."
Earlier this week, it was revealed that former National cabinet minister Steve Joyce has been nominated for the board, and suggested as a potential chair to replace Barbara Chapman.
The company's shareholders meet in early June to select a new board.
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