Fonterra seeks strong farmer mandate for sale
Fonterra chair Peter McBride expects a strong mandate from farmers shareholders for the proposed sale of its consumer and related businesses to Lactalis for $3.8 billion.
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.
