In the face of farmer backlash, the New Zealand Dairy Group has backed down over plans to reduce its board of directors from 16 to 10.
The idea was to have seven farmer directors and up to three business appointees, but it met strong resistance at a special meeting of more
than 1000 farmers at Mystery Creek in June, and Dairy Group chairman Henry Van Der Heyden delayed the vote.
Some farmers were concerned about the ratio of farmer directors to appointed ones and were afraid of losing control of their company.
In a letter to shareholders, Mr Van Der Heyden said the company directors were recommending a revised structure.
The new proposal is to reduce the board to 12, with nine farmer directors elected on a national basis and up to three business appointees.
Mr Van Der Heyden said the new proposal had unanimous support from the board, including Morrinsville director Keith Holmes, who publicly opposed the initial recommendation.
Farmers will be asked to vote on two resolutions relating to the proposal at the annual meeting on September 7.
Meanwhile, nominations for the four North Island director positions up for re-election have closed.
Hilary Webber, Graham Fraser and Earl Rattray will be returned unopposed, but farmers Max Purnell and Mark Townshend will contest the fourth seat.
- NZPA
