Shareholders’ Council seeks feedback on Director Elections Review
The Fonterra Shareholders’ Council is calling for shareholder feedback on recommended changes to the process for
electing Fonterra Directors.
The Shareholders’ Council is responsible for setting the rules for the Fonterra Director Elections. The recommendations
follow a review of the elections process undertaken by a taskforce of Councillors.
The Director Elections Taskforce is recommending establishing a candidate committee to assess the suitability of
candidates for the Fonterra Board of Directors. The committee would not rank candidates but it would inform shareholders
whether candidates meet set criteria.
The taskforce is also recommending that a cap be placed on campaign expenditure. Director Elections Taskforce Leader
Blue Read said: “These recommendations aim to improve the Director Elections process for shareholders, the Board,
candidates and the co-op.
“The right of shareholders to elect their Directors is paramount but farmers have told us that they want to know more
about candidates and their suitability for a Board position. The candidate committee will see that shareholders have
more information so they can cast an informed vote.
“By placing a ceiling on campaign expenditure, all candidates will have the same campaign opportunities regardless of
their resources.
“The proposed changes do not require a shareholder vote so it’s important for farmers to have their say during the
consultation period.”
Fonterra shareholders can provide their feedback on the recommendations by attending one of the nine consultation
meetings that will be held around the country between Thursday 12 and Thursday 19 May 2005.
The review process and recommendations are outlined in a consultation document, which has been mailed to shareholders
this week. The document also provides details of how shareholders can make a written submission.
A final recommendation will be developed following the consultation period and this will be considered by the Fonterra
Shareholders’ Council in June 2005. ENDS