Bid to remove Dairgold directors

A MOTION proposing no confidence in the board of directors of Dairygold and seeking their removal from office is to be moved at the co-op's annual general meeting next week.

Formal notice has been served by registered post on the near €1 billion-a-year-turnover society on behalf of a group of shareholders.

A vote of no confidence in the board was also passed at last year's AGM, with the result that nine of the 10 directors resigned within days.

All but one of the eight outgoing directors who subsequently sought re-election in regional ballots of the co-op's 209-member general committee were returned to the board. Two new directors were also elected. The motion going before the April 23 meeting at Cork Racecourse, Mallow, is tighter than the one passed last year in that it also calls for the removal of the directors from office.

Seán Keating, Meadstown, Kildorrery, Co Cork, spokesman for what is known as the Option B Group, said the resolution is being brought in response to requests from a large number of shareholders.

He said that to allow this situation to continue is unacceptable and inappropriate at a time of huge change for all farmers. "This motion will ensure shareholders remove them if they so wish and through an amendment to Rule 51 directly elect a new board to direct the society and senior management going forward. "It is really allowing shareholders to ensure the society has a strong board to make the right decisions to the choices and difficulties that lie ahead. It allows shareholders achieve a big say in the running of their business."

Mr Keating said a detailed presentation outlining further reasons for bringing this resolution will be presented at the AGM.

The Option B Group has also called on Dairygold shareholders to reject a proposed new rule book at next week's meeting.

It said the rule book aims to vest sweeping powers in the board. A large portion of it concentrates on putting obstacles in farmers' way, reducing their influence and diminishing their rights.

A significant majority voted no confidence in the board last July only to see most of the directors returned under a system of election that is copperfastened in the new rule book. The best way forward for the new Dairygold is for all shareholders to have a say in directly electing and removing the board.

A spokesman for Dairygold said there is no justification for anyone attempting to propose a vote of no confidence in the board, as it would be detrimental to the well-being of the business and against the best interests of shareholders.

"The board had done a very substantial job of work in the past year in the rationalisation of the business and in working to put it on a strong position to deal with the challenges ahead," he said.

"Dairygold had conducted the most comprehensive rule change consultation ever undertaken in the history of the Irish co-operative movement," the spokesman added.