Monday, 19 November 2012 09:22

Shareholders Council against farmer proposal

Written by 

The Fonterra Shareholders' Council has recommended farmers do not vote in favour of the shareholder proposal which is to be put forward at the annual meeting in December.

Chairman Ian Brown says the resolution, which calls for a minimum of nine farmer-elected directors and a maximum of four appointed directors, was pre-emptive of an ongoing Governance and Representation Review and could cause practical difficulties for the co-op moving forward.

"After careful review of the proposal put forward by Lachlan McKenzie the council recommends that Shareholders vote against it," says Brown.

"The council is concerned the resolution could serve to constrain the findings of the council's and the board's recently-commenced joint Governance and Representation Review and it would not be in the best interests of the co-op to pre-empt its findings.

"If any proposed changes come out of the review, shareholders can be confident that no changes can be made without consultation and a 75% shareholder vote in favour."

Brown says the council respected the rights of shareholders to propose resolutions for deliberation by all shareholders which is why the council will not consider its position on the resolution until after it has had the benefit of reviewing the outcome of the shareholder vote.

"The council is in place to represent and make recommendations in shareholders' best interests and will, where possible, support farmers' rights to have their say," says Brown.

"Because the shareholder proposal would change the constitution it would require a 75% shareholder vote as well as 50% council support for it to take effect."

More like this

Ballance grows shareholder base

The ranks of Ballance shareholders continue to grow with latest signings of more than 1000 new members bringing shareholder numbers up to a record 19,253. 

Featured

$52,500 fine for effluent mismanagement

A Taupiri farming company has been convicted and fined $52,500 in the Hamilton District Court for the unlawful discharge of dairy effluent into the environment.

Ospri brings Bovine TB testing in-house

The move to bring bovine TB testing in-house at Ospri officially started this month, as a team of 37 skilled and experienced technicians begin work with the disease eradication agency.

National

Machinery & Products

Fliegl offers effluent solutions

Founded in Germany as recently as 1977, today, the Fliegl Group employs more than 1100 workers, offering an expansive range…

» Latest Print Issues Online

Milking It

It's all about economics

OPINION: According to media reports, the eye-watering price of butter has prompted Finance Minister Nicola Willis to ask for a…

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter