A few candidates are riding the anti-TAF wave, hoping to secure the votes of at least the 34% of shareholders who voted against the controversial share trading scheme. Then, there is a small group who support TAF but are disgusted at the way former director Colin Armer lost out on the chairmanship. Armer, a major supplier, is unlikely to vote for the two directors including chairman-elect John Wilson.
Then there is Wilson, who faces the unique situation of being elected chairman-elect and seeking re-election in the same year. A solid endorsement from shareholders will be the perfect start to his new role.
Many questions are swirling around Fonterra governance. Shareholders have recently questioned why the co-op hasn't had a deputy chairman. Some have also questioned why outgoing chairman Henry van der Heyden is staying on the board. In fairness to van der Heyden, his term doesn't expire until the 2013 annual general meeting. Also, Wilson wants him around to ensure continuity when TAF is launched.
Against a backdrop of uncertainty about governance issues, this election has attracted 11 candidates, a few of whom have unsuccessfully contested the election the year before. And there are some fresh candidates.
At the annual meeting on December 17 in Hamilton at least one new director will join the Fonterra board. On November 26 Fonterra shareholders will receive candidate profiles; voting starts that day and runs until December 15. Shareholders will also have the opportunity to meet candidates and ask questions at meetings starting December 3.
How the corporate suppliers – Landcorp, Maori trust-owned farms and large South Island farms – vote will be crucial.
Most small farmers, the TAF vote fresh on their minds, are likely to cast a protest vote against the board. But whether their votes will be enough to rattle the board remains to be seen.
