Fund manager and Securities Commission member Simon Botherway has resigned from the board of DNZ Property Fund, following pressure from investors.

He had been appointed to oversee DNZ listing on the NZX in December last year but the listing was deferred.

DNZ said the reason for this was media coverage about its decision to give its chief executive and a soon-to-be-retired director $43 million in fees to terminate their internal management contract, more than $10 million of that each in cash, had “confused” its shareholders.

Mr Botherway’s position as an independent director of DNZ was short lived, lasting from November 2009 to this week.

As NBR reported in December, MMG Advisory Partners, which has thousands of clients with funds invested in DNZ, campaigned to have Mr Botherway removed from the board.

The company’s “ongoing uncertainty” inspired Mr Botherway to quit, according to DNZ Property Fund director Tim Storey.

“Simon joined us with the expectation DNZ would be listed on the NZX by now and we were fortunate to secure someone of his standing to add further strength to the company’s governance,” Mr Storey said.

“But, the listing was deferred pre-Christmas and, while we are still trying to find our way through the current delay, regretfully Simon has decided to leave.”

Mr Storey told NBR he understood MMG supported Mr Botherway as a director.

MMG Advisory Partners director Mr van Schaardenburg also wanted to see Mark Hopkinson resign, which he has done as DNZ announced today.

He decided to step down because the effort involved in untangling DNZ’s problems was too intense.

“Long-standing Board member Mark Hopkinson has also decided to step down to concentrate on his other interests as our current discussions require considerable time and resource commitments,” said Mr Storey.

Mr Storey told NBR a meeting would be held soon, though a time had not yet been scheduled, to discuss replacing the two directors. 

DNZ Property Fund owns $730 million of property.