The New Zealand Shareholders' Association says it is fairer to retail shareholders for companies to raise capital through rights issues than through share purchase plans.
Chairman John Hawkins told the association's annual investor conference the organisation is having some success in convincing companies of its point of view.
He cited Argosy Property's recent decision to use a rights issue to raise funds rather than a share purchase plan (SPP).
"SPP's are convenient and cheap and quick for companies, but they are frequently dilatory and unfair to retail shareholders," he said.
Mr Hawkins says the association talked with Argosy, which listened and has used the rights issue to raise funds.
Argosy Property raised $87 million from a one-for-seven rights issue in July and August, and last week Precinct Properties raised $50 million from a placement to institutions.
Precinct plans to raise up to $20 million more through a share purchase plan for retail investors.