PGG Wrightson Managing Director Tim Miles has resigned his position, effective immediately.

Tim Miles joined PGW in 2008, and oversaw a reduction in the company’s debt following problematic deals with Silver Fern Farms and New Zealand Farming Systems Uruguay.

PGW is adopting a new business model, and it’s understood Mr Miles’ job description would have changed significantly.

Miles’ departure comes as PGW prepares for its annual meeting in Christchurch next week. The first since the tense encounter in Auckland late last year.

The New Zealand Shareholders' Association is planning to ask some tough questions at the meeting over PGW’s part ownership of Wool Partners International.

Wool Partners is owned by PGW and Wool Grower Holdings. PGW sold its shares in 2008, but lent Wool Grower Holdings $10m to finance the deal. It’s owed a total of $17m by the two.

Shareholders' Association president Alan Best says investors want answers on PGW’s exact involvement in a company it supposedly parted ways with.

“We’re really concerned that the chair outlines the nature of the deal and its current state in some detail, because [PGG Wrightson] made the decision to get out of the wool sector.

"They sold their wool trading operation into a shell company which hopes it’s going to float as a farmer co-operative in future.

"These things just need a very clear explanation, and until we got some of the answers, we’re going to remain very sceptical.”

Mr Best says shareholders want assurance the company’s ongoing interest in WPI is protected if the debt can’t be repaid.