By PHILIPPA STEVENSON agricultural editor
The 16-member New Zealand Dairy Group board has bowed to opposition to plans to cut its size, postponing a shareholder vote on the issue for three months.
More than 1000 suppliers vigorously debated proposed changes to the company's governance and shareholder representation at a five-hour meeting near Hamilton yesterday.
They voted 83.7 per cent in favour of a 24-member shareholders council - a body for which elections were held earlier this month.
Many speakers condemned the speed of the changes. They questioned the risks of cutting farmer directors from 15 to seven, and increasing appointed directors from two to three.
Morrinsville director Keith Holmes made a lone stand against the decrease in directors which, he said, had him feeling like a leper.
Waitakaruru shareholder Max Purnell, who with fellow farmer Warren Hill obtained a QC's legal opinion criticising the company's plans, said the proposals were a "company wrecker."
"It's way too fast, way too soon and a naked grab for power by some. Slow them down please," he urged.
Veteran director Graham Calvert moved the motion to make the cuts.
Big boards made too many compromises, and decisions took too long "while the opposition walk ahead of us," he said.
Company director and Dairy Board chairman Graham Fraser seconded the motion, calling for a greater number of non-farmers to bring "a broader perspective."
Before breaking for lunch, company chairman Henry Van Der Heyden - taking his first big meeting since being elected last October - attempted to get a show of hands on the issue as an indication of the meeting's mood, but was noisily turned down. After a meal which left many hungry - and indicated the company was unprepared for the size of the turnout - Mr Van Der Heyden moved that the plans be put on hold until the annual meeting in September.
He won a large majority vote on a show of hands.
Mr Van Der Heyden said he made the move on the strength of feeling from the meeting.
"I could have pushed it through but it is very important to me that we take our shareholders with us," he said.
"Obviously the shareholders need a lot more time to consider what we are trying to do.
"We have to consult with the shareholders, get the council in place, and I think that we have taken a good step forward.
"When you think of the history of the company, waiting two more months to progress that is actually quite small."
Amid a crush of congratulating farmers, one told Mr Holmes his stand had been vindicated. He said he was pleased with the outcome.
"We were pushing it too fast and too hard.
"We had the cart before the horse and for that reason the way that Henry has handled it is the right way. It gives a chance for everybody to have an input with the full information."
Dairy Group shareholders lock horns with directors
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