Friday, 16 October 2020 14:28

Shareholders Council review - final report out

Written by 

Fonterra Shareholders Council chairman James Barron says the council supports the recommendations of a review into its role and functions.

A steering group delivered its final report to the council today.

Barron says the council is committed to actioning the recommendations.

He says councillors will be meeting farmers in their respective wards next month “to get a greater understanding of their views and expectations”.

The steering group, chaired by James Buwalda, has made a list of recommendations including changing the council’s name to Fonterra Cooperative Council.

The steering group says the council must actively represent the interests of all members of the cooperative and that this representation role must not conflict with the board’s governance role.

It says to avoid blurring representation and governance, the council should stop communicating board strategy and company operations to members.

Describing the council as a ‘cornerstone shareholder’ should also cease.

The steering group says the council’s primary role must be to connect members to their co-op.

It calls for communication with members to be strengthened. It also suggests members are fully informed of the co-op’s performance.

“It must hold the board to account. This means seeking from the board explanation and responsibility for Fonterra’s strategy and performance.”

It wants councillors to stop getting access to confidential and material from the co-op “as such access compromises the council’s ability to be independently objective”.

“The council should as far as practicable draw on publicly available information and independent performance assessments. It should seek independent analysis as required,” the steering group says.

It also wants the council’s operating framework to change “so it can deliver its functions more efficiently”.

It recommends retaining the current ward structure and the council to be organised into three teams – connection, accountability and guardianship.

Buwalda says the report was prepared following seven months of consultation with Fonterra farmer suppliers, the council and the board.

“We are very grateful for submissions and other feedback from farmers – both through the survey carried out in May and discussions around the country last month,” he says.

“The feedback showed they overwhelmingly want a strong and capable council to effectively represent their interests, but also need to see significant change in the way the council operates in order to meet their expectations.”

 

More like this

Entitled much?

OPINION: For the last few weeks, we've witnessed a parade of complaints about New Zealand's school lunch program: 'It's arriving late.' 'The portions are wrong.' 'I wanted caviar.'

Fonterra mulls options - sale or IPO

An outright sale of Fonterra’s global consumer business is more likely than a float, says Forsyth Barr senior analyst equities, Matt Montgomerie.

Fonterra updates earnings

Fonterra says its earnings for the 2025 financial year are anticipated to be in the upper half of its previously forecast earnings range of 40-60 cents per share.

Featured

Let the games begin!

New Zealand's largest celebration of rural sports athletes and enthusiasts – New Zealand Rural Games - is back for its 10th edition, kicking off in Palmerston North from Thursday, March 6th to Sunday, March 9th, 2025.

The future of beef breeding

Progeny testing at Pāmu’s Kepler farm in Southland as part of Beef + Lamb New Zealand’s Informing New Zealand Beef programme is showing that the benefits of hybrid vigour could have a massive impact on the future of beef breeding.

Editorial: GMO furore

OPINION: Submissions on the Government's contentious Gene Technology Bill have closed.

Chilled cow cuts enter China

Alliance Group has secured greater access for chilled beef exports into China following approval of its Levin and Mataura plants to supply that market. With its first load of beef from Levin clearing Chinese customs in early January and a shipment from Mataura recently arriving in China, journalist Leo Argent talked to Alliance general manager safety and processing Wayne Shaw.

National

New CEO for Safer Farms

Safer Farms, the industry-led organisation dedicated to fostering a safer farming culture, has appointed Brett Barnham as its new chief…

Machinery & Products

AGCO and SDF join hands

Tractor and machinery manufacturer AGCO has signed a supply agreement with the European-based SDF Group, best known for its SAME,…

» Latest Print Issues Online

The Hound

Sacrificed?

OPINION: Henry Dimbleby, author of the UK's Food Strategy, recently told the BBC: "Meat production is about 85% of our…

Entitled much?

OPINION: For the last few weeks, we've witnessed a parade of complaints about New Zealand's school lunch program: 'It's arriving…

» Connect with Rural News

» eNewsletter

Subscribe to our weekly newsletter