WOOLGROWERS would still have the choice in electing skills-based directors to the Australian Wool Innovation board despite new Federal Government requirements, chairman Wal Merriman said recently.
The Federal Government and AWI recently agreed that the wool research and development body establish a skills-based board as part of a statutory funding agreement up to 2013.
The skills-based board would be required to demonstrate expertise in corporate governance, wool growing, processing, product promotion and retail marketing, domestic and international trade, research and development, technology transfer, innovation, natural resource management, finance and business management.
But at the Australian Sheep and Wool Show in Bendigo Mr Merriman said AWI’s constitution remained intact. He said previous attempts to impose skills-based board members had been opposed by growers.
“Industry has done this before and every time a board has been imposed on the growers the growers have revolted," he said.
“I take the view the shareholder knows what he is doing and knows what he is voting for.
“It is their decision, they are the ones that are funding it.”
He said if growers did not have “some sense of empowerment” they could vote not to fund AWI at the next Wool Poll.
Mr Merriman said growers had agreed that there would not be any elections for two years, but the board could appoint skills-based directors for short terms.
“You could have a scenario where if you think you were lacking in a skill you could bring someone on and if they didn’t want to contest the hurly-burly of an election they could resign.
“But if you look at the (skills) list they will need a board of about 16 people if each one has got to have that specific skill mentioned.”
Mr Merriman said AWI directors would have to be multi-skilled.
“And I would suggest they have got to have knowledge of the industry.”
He said the AWI board’s nomination committee would advise growers of its preferred candidates before the next election.
It was “a bit early yet” to be making skills-based appointments but Mr Merriman believed other board members were thinking about this.
“Some might argue that we haven’t got a wool marketer on the board, but the business has all been done, we’ve had (former CEO) Brenda McGahan for 12 months or more and the marketing strategy is set in place for the next 3-5 years.
“We’ve got plenty of successful sale people who have sales people on the board,” he said.
“We’ve got a wealth of wool-specific talent in the company.
“So I’m happy we’ve got the marketing skills within the company though we don’t have a specific wool marketer-retailer on the board.”
Mr Merriman said legal skills were covered and there had been three reviews on corporate governance.