Dairygold deny bonus share offer a sweetener
The Option B Group plans to move a vote of no confidence in the board of directors at tomorrow's annual general meeting and have them removed from office.
But the co-op's directors have urged shareholders to embrace the new rule-book, pointing out that it reflects a broad consensus of opinion, and would deliver a framework to successfully build up the business.
They said many members requested a bonus share issue during the lengthy process of public consultation on the proposed new rules, in recognition of Dairygold's growth and development since 1990.
Accordingly, following a proposal by the rules consultative committee, the rule changes to be voted on at tomorrow's Special General Meeting include a proposal to issue one bonus share for every two shares held at March 25, 2004.
But the Option B Group said the bonus share offer is a desperate effort to win support for a rule-book that proposes to divide shareholders into various categories, reduce their influence and vest sweeping powers in the board of directors.
In a press statement, the Option B Group said the Dairygold board decided to offer bonus shares if farmers adopt these new rules as an entire package. If however, farmers vote against the changes, there will be no bonusing of shares. In other words, no 'sweets' for bad boys who refuse to play ball, said the Group.
" Rights to vote should not be thrown away for a few extra shares", said the Option B press statement.
"These should have been granted long before now with no strings attached as a gesture of goodwill to people who have worked long and hard to grow Dairygold to the €1 billion company it is today. After all, money was always found for redundancy packages and pension top-up contributions when the need arose. Why should we as owners/shareholders of Dairygold be treated any differently," the group asked.
It claimed that processes in the proposed rulebook will prove cumbersome to implement, a nightmare to administer, but ensuring gainful employment well into the future for a plethora of accountants, solicitors and 'experts' of all kinds, long after many farmers will have lost the race of running faster to stand still, and will have exited farming.
Dairygold claimed, however, that the new rule book is entirely appropriate for a co-op of the size, scale and nature of Dairygold, providing a roadmap for good governance, streamlining decision making, and improving democratic accountability with more powers for members, more clearly expressed than ever before. It ensures that all shareholders' financial rights and share value are protected, provides a framework for members to trade shares and allows for share redemption at retirement or at the age of 65, said directors.
"The members of the Rules Consultative Committee are urging all members to support this package and reject any other proposals which could have the unintended effect of leaving us further back than where we started," said the co-op in a press statement.
The Dairygold AGM will be held tomorrow, Friday, April 23 at Cork Racecourse, Mallow at 11 am. The SGM follows at approx 1.30 pm.
