Fonterra hopes to bring revised recommendations back to farmer shareholders before the end of the year.
At today’s meeting farmer shareholders did not pass a resolution regarding changes to Fonterra’s constitution and shareholders’ council by-laws.
At the meeting 63.74% of votes cast were in favour of the changes but under Fonterra’s constitution 75% support was needed.
Fonterra chairman John Wilson said that this is the co-operative working as it should.
“We asked our farmers to consider significant changes to the process for electing directors.
"A strong majority, almost two-thirds of our farmers, voted in favour of the recommendation.
“They want a system that gets the most knowledgeable and skilled candidates on to the board, and a process that encourages diversity and sees our most capable farmer shareholders put themselves forward,” he said.
“The fact that we didn’t achieve the 75% tells us that the change proposed was a big ask, particularly around the change from being able to choose from any and all candidates. The board respects that view.
“We owe it to our farmers and to New Zealand to move this co-operative forward by developing a model that gets the best possible talent on to the board in the future.
"I am confident we can develop a solution which secures a mandate,” Wilson said.
