Pyne Gould Corporation has appointed two new independent directors, John Harvey and Michelle Smith, to the board of MARAC Finance and will replace retiring PGC chairman Sam Maling with Bruce Irvine.

This follows MARAC Finance's announcement of a NZ$2.5 million provision for an unauthorised 2003 loan that appeared to have been suppressed.

PGC said the new directors would work with the existing directors, Bruce Irvine (Chairman), Bryan Mogridge and Jeff Greenslade. Bruce Irvine is to replace Sam Maling as chairman of Pyne Gould Corporation.

"Pyne Gould Corporation has selected individuals who have appropriate experience, integrity and skills, and also included a suitable range of skills on the board (rather than a concentration in a particular area). These are attributes which are important to the Reserve Bank.

The review follows last year's successful $273 million recapitalisation and included not only the Pyne Gould Corporation board but also the requirements of its subsidiaries Perpetual and in particular MARAC. It was conducted to ensure that the boards of these distinct businesses had directors with the requisite skills and experience needed to drive each of the businesses forward.

Among the changes is the intention after the shareholders' meeting to elect Bruce Irvine as chairman of Pyne Gould Corporation to replace Sam Maling who, after presiding over the recapitalisation and review process, will step down. Mr Irvine will preside over an initial five member team, which also includes one new appointment "“George Gould*, who has extensive experience in financial and rural services."