30 Oct 2012

Fonterra constitution changes proposed

12:44 pm on 30 October 2012

A group of Fonterra shareholders is proposing changes to its constitution to lock-in farmer control of the board and the co-operative.

They'll put resolutions to the AGM in December to define the farmer majority on the board and to ensure that only farmer directors can elect the chair.

A spokesman for the group, Lachlan McKenzie of Rotorua, says there is currently no protection in Fonterra's constitution against a reduction in of farmer directors on the board, leaving it open to the risk that they could lose control.

''We are proposing there should be a minimum of nine farmer-elected directors,'' he said.

Mr McKenzie said it's also important that only farmer directors of Fonterra should be able to elect the chair.

The resolutions will go to Fonterra's annual meeting on 17 December.