In the KISP referendum, growers backed measures to allow lessees of orchards to own shares and vote. Under the new Constitution rules, this would be up to a maximum of the four-to-one share cap per KPIN, and a maximum of the one-to-one voting cap per KPIN.
The lessee’s share entitlement is for any balance of shares under the maximum share entitlement not taken up by the owner. The lessee can take up the ‘headroom’ under the share cap and voting cap not used by the landowner.
If both the lessee and the landowner own shares and the combined shareholding exceeds the shareholding cap, then the lessee must dispose of their shares exceeding the cap (within the three-year period before sanctions apply, not immediately) before the landowner is required to do so. This is the Landowner Priority Rule, which was also recommended as part of the original KISP proposals.
A lessee’s right to production for share cap or voting entitlement purposes will not require agreement from the owner. It is an automatic right if the landowner does not take up their full share entitlement.
EXCEPTIONS TO THE LANDOWNER PRIORITY RULE
- If there is an existing 20 or more-year lease in place at the time of the introduction of the new rules, then the share cap and voting cap priority entitlements will be split 50/50 i.e a share cap of two shares to one tray for both the landowner and the lessee.
- If there is a ‘Glasgow’ lease in place at any time, then the lessee has priority over both shares and votes rather than the landowner.