Is Fonterra shooting itself in the foot with proposal to axe shareholders' fund? 9 May, 2021 05:00 PM 5 minutes to read Fonterra shareholders mulling big capital structure change proposal. Photo / File Part of Fonterra leaders' preferred proposal for a major capital restructure risks undermining the very thing they are seeking to achieve - securing an economic lifeblood milk supply. That's the view of Jarden investment bank head of institutional research Arie Dekker, who believes the two prongs of thinking behind directors' favoured proposal "don't go naturally together". Read More Farmers must buy shares to supply milk to Fonterra, New Zealand's biggest business. Faced with the threat of falling milk supply, the board is proposing making the capital requirements on farmers more flexible, by relaxing the share standard from one share for every kilogram of milk solids supplied, to one share for 4kg.