Fonterra chair Peter McBride says its focus is now on delivering the strategic commitments we have made.
Fonterra shareholders have voted in favour of the co-operative’s new capital restructuring, with 85.16% supporting the proposal at a special meeting in Invercargill.
Chair Peter McBride says the vote showed they had a strong mandate for change.
“Changing our capital structure is the most important decision we as farmers have made in almost a decade,” McBride said.
“The results of this year’s resolutions were all above 80%, which shows farmers are united in their support for the direction of the co-op. Our full focus is now on delivering the strategic commitments we have made.
“I would like to thank everyone who voted and the thousands of farmers who gave us their time and ideas during the consultation period, which helped us to shape the proposal into the model that was successfully passed today.”
Fonterra will now work with the Government on how the proposal can be given effect under the Dairy Industry Restructuring Act, the legislation that enabled the formation of Fonterra back in 2001.
“I believe we are philosophically aligned with the Government and remain confident that we can find a regulatory framework that supports the Flexible Shareholding structure,” he said.
“The strong mandate we received today will support our conversations with the Government as we continue to work together to find a mutually acceptable outcome.
“We will continue to keep farmers and unit holders updated as these conversations progress.”
The Flexible Shareholding structure will come into effect once the board is satisfied that any steps necessary for implementation have been (or will be) completed. The co-operative is aiming to implement the changes as soon as possible from the beginning of next season.
