Only two left for new Fonterra vote

John Nicholls of Canterbury and Jamie Tuuta of Taranaki and Wellington will contest the rerun of the Fonterra director election to fill the one remaining vacancy.
Share on twitter
Share on facebook
Share on linkedin
Share on whatsapp
Share on email

One-term director Ashley Waugh has decided not to run again though he came within a whisker of being re-elected in the first round of voting.
Fonterra Shareholders’ Council chairman Duncan Coull sent an email to all farmer-shareholders explaining the rerun process and the council’s reasons for not opening it up to new candidates.
The rerun was necessary because only two of five candidates for three seats received the required 50% approval of farmers, Peter McBride at 80% and Leonie Guiney at 63%.
Waugh got 49%, Nicholls 44% and Tuuta 40%.
The rules of the first election said that if not enough candidates received 50% support there must be a second election and the council is responsible for setting the rules for it.
“In reaching this decision your council has carefully considered the background circumstances, the range of possible options to find candidates for the second election and what is best for the co-operative,” farmers were told.
Coull said matters of equity, logic and timing figured in the new rules, being the first time a rerun has been required since the new election procedure began in 2016 after the governance and representation review.
All three candidates had strong support in the first election, shareholders still have a choice and the process respects the governance and representation outcome, which had strong support in 2016.
Also shareholders still have a mandate to approve or reject candidates and if neither reaches 50% again the board will appoint a temporary director and Fonterra will move on into the 2019 cycle.
There will not be a third election, Coull said.
If both get over 50% the candidate polling the highest will be elected.
The rerun could be done before Christmas and the board could move forward with its performance review. But allowing new candidates would have pushed the process out to March.
Coull said there will be an election process review before the 2019 election and new candidates will have a chance then.
Voting online and by mail will open on December 3 and close at 1pm on December 20, the results to be declared later that day.
Another round of candidates’ meetings will not be held but videos from both will be made available.
Waugh said he had reflected on the result of the first election and even if he had received 50.4% it was not resounding support from shareholders.
“On a milksolids basis more than half of people put a cross next to my name.
“I absolutely respect their right to make choices and I really didn’t see the point in going through it all again, to be honest.”
Questioning from farmers during the roadshow did reveal the depth of disappointment with the 2018 financial results but Waugh pointed out the major negatives were sourced in decisions before his time as a director.
“In terms of a backlash in voting I would have hoped farmers looked through the financial result to the operating figures.
“But the shareholders have spoken and I accept that.”
Waugh will continue dairy farming near Te Awamutu and remains a director for Seeka and Colonial Motor Group.
Nicholls is a co-owner with his wife Kelly in the six-farm Rylib Group in Canterbury and chairman of the local irrigation company.
Tuuta recently finished a long period as Maori Trustee, is a shareholder and former chairman of Paraninihi Ki Waitotara, the largest Taranaki supplier to Fonterra, with 15 dairy farms, and is chairman of Maori Television and Te Ohu Kaimoana (Maori Fisheries).
Coull said the constitution provides for the council to set election rules and the re-run process might be different each time it is needed.
“It is part of our responsibility to interpret what shareholders are saying and reflect the greatest intent.”

Mirá También

Así lo expresó Domingo Possetto, secretario de la seccional Rafaela, quien además, afirmó que a los productores «habitualmente los ignoran los gobiernos». Además, reconoció la labor de los empresarios de las firmas locales y aseguró que están «esperanzados» con la negociación entre SanCor y Adecoagro.

Te puede interesar

Notas
Relacionadas