Speaking at a special meeting held in Hamilton to vote on changes to Fonterra’s governance and representation model, Wilson said the timing of rumour was «interesting» given that it had come out in the leadup to the vote on Friday.
«It absolutely appalls me that just at a time when, surprise, surprise that there is a vote going on in this co-op that sort of rubbish hits the media.»
Fonterra hoped to have a new proposal for its farmer shareholders before the end of the year after it failed to get the 75 per cent majority vote needed to change the co-operative’s governance and representation model.
Nearly 59 per cent of Fonterra’s shareholders voted on the proposal, but it fell short with 63.7 per cent voting in favour of change at a special meeting in Hamilton, attended by about 200 of the co-operative’s farmer-shareholders.
The vote would have reformed Fonterra’s board and reduced its size from 13 directors to 11, consisting of four independents and seven farmer directors.
Also proposed was a change to the way prospective candidates were chosen for board elections by keeping their names in confidence until they were nominated as a candidate. It was hoped this would draw in top farmers who had shied away from making themselves available in the past.
The discreet information gathering of potential candidates would have been done by a proposed independent selection panel which would have whittled them down to a shortlist and was expected to bring in farmers deterred by the daunting circus-like election process.
Fonterra chairman John Wilson said the main feedback the board had received against the proposal was that farmers were not comfortable with the confidentiality aspect of choosing candidates for board elections. It was a significant change to the way potential directors were to become selected and elected to Fonterra’s board.
«Your board and [Shareholder’s] Council will go back and consider what we’ve heard and look to adjust its proposal without compromising its essential elements.»
In the short term there would be a formal review of the process and the board and the council would «take a breather» before coming up with a new proposal which should be out by the end of this year.
«I am confident that working together, we will nail this before the end of the year.»
Wilson said he was encouraged that two-thirds of farmers voted for change and it showed there was clearly a desire for change within Fonterra’s farmer base.
He said failing to achieve the 75 per cent majority had not reflected badly on the co-operative.
Source: Stuff