Fonterra shaves 50c off forecast milk price
Fonterra has dropped its forecast milk price mid-point by 50c as a surge in global milk production is putting downward pressure on commodity prices.
The Fonterra Shareholders Council has confirmed that a second election for the remaining vacancy on the co-op board will be held next month.
The election will be between self-nominated candidate John Nicholls and Jamie Tuuta, who was nominated by the board, having been recommended by the Independent Selection Panel. Both failed to get elected in the first election.
Voting will open on 3 December and close at 1.00pm on 20 December, and the results will be announced later the same day.
Only two candidates from the first election, Leonie Guiney and Peter McBride, obtained more than 50% support from voting shareholders. The rules of the first election state that if not enough candidates obtain more than 50% support, there must be a second election.
“This is the first time a second director election has been required,” says Council Chairman Duncan Coull. “After careful consideration, the Shareholders Council has determined that the second election will be a vote between the unsuccessful candidates nominated in the first election who wish to re-stand.”
As with the first election, to be successful a candidate must obtain more than 50% support from Shareholders who vote. If both candidates get more than 50% support then the candidate with the highest level of support will be elected. If no candidate gets more than 50% support there will not be a third election and the board may exercise its constitutional power to make a temporary appointment until the 2019 Annual Meeting is completed. (The board may not appoint an unsuccessful candidate).
In an email to shareholders, Duncan Coull said that “In reaching this decision your council has carefully considered the background circumstances, the range of possible options to find candidates for the second election, and what is best for the cooperative.
“This approach provides shareholders with a choice between candidates who had strong support in the first election, and the timing gives the board certainty to move forward with its performance priorities. New candidates will have the opportunity to put themselves forward in 2019 as part of the 2019 director election cycle.”
