Council Praise Farmers’ GRR Engagement

10 June 2016

Council Praise Farmers’ GRR Engagement,
Committed to Continuing Process with Board And Farmers

Fonterra Shareholders’ Council Chairman, Duncan Coull, thanked Fonterra Farmers for their engagement throughout the Governance and Representation Review process and said he was encouraged by the significant support the Board’s resolution received at today’s Special Meeting in Hamilton.

The proposal, which sought Shareholder support to change aspects of the Co-operative’s Governance and Representation structure and was endorsed by the Fonterra Board, the Shareholders’ Council and an independent expert panel headed by Chris Moller, achieved 63.74% support, 11.26% shy of the 75% required to implement its recommendations.

Duncan Coull: “The Council’s objective throughout has been to ensure that a robust final proposal was presented to Shareholders for their consideration and we are confident this was delivered.

“As the owners of Fonterra, it was then our Farmers’ right to determine the proposal’s suitability – the mandate for change must come from them.

“Even though the 75% threshold was not reached, the result indicates that the proposal was on the right track and that there is a willingness from Shareholders to continue with the process.

“As such, the Council will continue to work with the Board and our Farmers as we seek to implement an improved governance and representation structure which will serve to ensure the strength of our Co-op both now and in the years ahead.

“An important part of this will be the Council’s review of its role and functions. This will begin in the near future and we look forward to engaging with our Shareholders during this process.”

Mr Coull noted the high level of Farmer participation as a highlight of the project.

“Providing multiple platforms from which our Farmers could influence the build of the proposal from the ground up has made for a truly Co-operative experience and I have received nothing but positive feedback on the process that has been undertaken.”

Mr Coull also acknowledged the Board, Council and Management for their efforts during the Review process.

ENDS

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