Friday, 18 October 2019 13:03

Watchdog or lapdog?

Written by  Milking It

At last we see Fonterra shareholders asking questions about its supposed watchdog, the shareholders council.

After years of rubber stamping strategy and executive performance now revealed as fairly average, the council has earned a reputation as being more lapdog than watchdog. Concerned shareholders now want answers. 

They have put a resolution for the Fonterra annual meeting demanding an independent review of the council, to be completed mid-2020 with any constitutional changes tabled at the 2020 annual meeting. 

Crucially, they don’t want another internal whitewash review: they rightly say it must be independent. Milking It has long held doubts about the council’s independence, given it is a proven gateway to plum board positions within the Fonterra network.

Off the back of a $605 million loss this review is a no-brainer. The watchdog has been caught napping on the job.

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