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FSC recommendations ‘contradictory’

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The Fonterra Shareholders’ Council (FSC) steering group recommendations are contradictory and do not contain any financial accountability, Southland dairy farmer Tony Paterson says.
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Tony Paterson | October 28, 2020 from GlobalHQ on Vimeo.

“The review recommends no confidential information be given to councillors, but that the council be first for consultation in any discussions,” he said.

“There is no estimate for implementation or what the reset council would cost.

“It recommends a symbolic increase in remuneration for the chair but doesn’t suggest a figure, and what about the councillors?”

Paterson says the FSC is ditching the “cornerstone shareholder” tag, but hanging on to the phrase “holding the board to account.”

“The mechanisms have always been there, for instance, calling a special meeting,” he said.

The review says council should be the primary contact for any major changes, but shareholders elect directors to get on with business rather than be hamstrung by council consultation.

“That is injecting the council into governance, in my opinion,” he said.

Paterson believes the steering group’s final report was rushed out before the annual meeting in response to his proposals in the Notice of Meeting for November 5.

“To say the recommendations are going to be implemented without further consultation looks hasty,” he said.

He is confident his proposals, including a $1 million budget cut for the council, will get majority support at the AGM.

Council chair James Barron encouraged shareholders to read the steering group’s final report before voting on the Paterson proposals.

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