Coutts appointed chair-elect of Mainland Group
Fonterra has named Elizabeth (Liz) Coutts the chair of Mainland Group, the proposed divestment entity of the co-operative’s consumer business.
Two former Fonterra directors are seeking a reduction in the size of the co-op board.
Greg Gent, a former deputy chairman and Colin Armer, a former director and one of Fonterra's single largest farmer supplier, have put forward a notice of proposal to the co-op's agm in Waitoa next month.
They want shareholder support for a reduction of board members from 13 to nine.
If it is successful their proposal requires the Shareholders Council to conduct an election for all six elected directors in March 2016.
However, the proposal requires 50% support from the Shareholders Council and at least 75% of shareholder votes in favour.
"It's a big hurdle but we've made sure that there are plenty of mechanisms for shareholders to discuss the proposition and its pros and cons before casting their votes," Gent says.
"We all want our cooperative to be more globally competitive and successful with a clear strategy to achieve that. Our farming businesses and livelihoods depend on that.
"We believe that a smaller board is essential to improve the governance and performance of the cooperative. Fonterra has performed well below the expectations the farmers who voted to form it had at the time.
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