Kerry Co-op shareholders disappointed that new board will not be elected
Farmers who hold shares in Kerry Co-op have voiced concerns that a new board of directors will not be elected after its advisory committee elections take place in October.
A Co-op spokesperson said the board of directors met in July and August to discuss the implementation of the electoral review.
Please log in or register with Farming Independent for free access to this article.
It is understood the review decided to reduce the number of advisory committees from 10 to nine and lower the number of farmer representatives elected to these committees.
The board of directors is also expected to gradually decrease its headcount from 28 to 18 in the future.
Kerry Co-op said the reduction in committee members was due to the "major reduction in milk suppliers in the co-op over the last 17 years (the time of the last review when Golden Vale was acquired by Kerry)".
Chair of the Kerry Co-op Shareholders Alliance Donal Counihan told the Farming Independent that members are disappointed a new board is unlikely to be elected following the advisory committee elections despite this being previous practice.
"Rules have been interpreted in such a way that there doesn't have to be an election of a new board after the electoral review and new advisory committee elections, but this has always been the precedent. Kerry had two reviews before and that is what happened," he said.
"There was a general expectation among shareholders that the election of a new board would've given shareholders the opportunities to express their opinion on board performance."
However, Kerry Co-op insisted on the veracity of the review. "The electoral review has been carried out by the Co-Op Secretary in accordance with the rule-book. The advisory committees were consulted and the changes which will be implemented by year end will reflect that," the spokesperson said.
For Stories Like This and More
Download the Free Farming Independent App