Shareholders back retaining directors

Brown expressed confidence in the board's governance structure and said van der Heyden and Waters was a practical move particularly as at least one new director would be voted to the board in December.

"The decision is important to ensure continuity within our cooperative as we begin operating in a post-TAF landscape.

"Both Sir Henry and Waters will have signed their name to the TAF prospectus and the Council expects that they would stand behind it and remain to see the launch of TAF through," he says.

Van der Heyden steps down as Fonterra chairman in December, to be replaced by John Wilson.

Wilson says it's important to have continuity and experience around the board tableduring TAF's launch.

"As a result both Henry and Ralph have agreed to stay on until after TAF is up and running. They will provide valuable guidance during this period. Their involvement is in the best interests of the cooperative and the Board has thanked them both for being flexible."

Wilson says Waters' extended appointment would need to be ratified by farmer shareholders at the annual meeting in December. The process to identify a new appointed director was already underway. Van der Heyden would remain on as part of his normal farmer-elected term which runs to the annual meeting in 2013.

"However, neither Henry nor I think it will be necessary for him to stay this long. He has made other professional and personal commitments that he is keen to pursue as soon as possible."