Tao Lin
The chairman of Fonterra has responded to two former Fonterra directors’ call for a smaller board, saying their proposal was not “the co-operative way”.
Former board members and Fonterra shareholders Greg Gent and Colin Armer have proposed cutting the number of board members at the dairy giant from 13 to nine as a way to improve the company’s performance.
Wilson said bringing a special resolution to an annual meeting on “such a critical matter as governance and representation” went against the way the company worked.
He said the board and shareholders’ council were currently working together to develop a discussion document that would go out to shareholders early next year.
The aim was to have a special shareholders meeting mid-way through next year.
“That is the co-operative way. We need to have a constructive and genuine consultation within the shareholder base – not impose a solution developed by just two of our farmers,” Wilson said.
He said once all the opinions of Fonterra farmers had been heard, the board and council would develop a proposal to be voted on.
“This is not something to be developed on the back of an envelope,” Wilson said.
Former director Armer said the board had promised shareholders three years that there would be a review of governance and representation but nothing happened.
Wilson said the issue was top of the agenda before Fonterra’s botulism scare and the 1080 incident and the question of governance and representation was put on hold until those issues were better under control.