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 CBH zone debate heats up with EGM call 

CBH zone debate heats up with EGM call

10 Sep, 2009 02:00 AM
FRUSTRATED graingrowers have slammed the CBH Board's decision to call an Extraordinary General Meeting (EGM) of shareholders next month, to address the inequity of its Board representation.

A formal EGM notice is due to be mailed out to all CBH grower shareholders this week, including a proxy voting form.

The notice explains the details and reasons behind the proposed changes to the structure and boundaries of the controversial director election system.

The current system provides an annual forum for CBH grower shareholders to approve or disapprove of their local CBH Board director's performances, at the end of their three year terms.

While that aspect of the process will remain unchanged, the proposal seeks to change the number of districts or Port Zones, from four to five, and replace the Zone names with the generic numbers 1-5.

Four of the five proposed districts will provide two directors, while a fifth district surrounding Esperance will have only one director.

A closer reading of the explanatory memorandum provided by CBH says the new structure will basically increase the powerful Kwinana Zone by one director, and reduce the Esperance Zone by one.

The move aims to equate the volume of tonnes produced in each district and the number of growers into line with director representation.

The new motion also proposes to remove the requirement that election candidates must have their main grain-growing interests located in the district in which they intend to contest election.

Speaking last week in CBH's fortnightly grower newsletter, Down the Line, CBH chairman Neil Wandel said his Board had been wrestling for some time with the issue of addressing an imbalance in director representation from its four election districts.

Mr Wandel said the Board was strongly of the view that it must act to remove the inequities in the current system.

He said the Board had determined to resolve the issue, and "put it behind us", by calling the EGM of shareholders on October 8, 2009.

The Board is unanimously recommending shareholders vote in favour of the proposed amendments.

However, Esperance growers Mic Fels, Chris Reichstein and Andy Duncan expressed serious dissatisfaction at the latest move to vote on the matter at the EGM in October, after it had already been voted on at the last two AGM's.

Full story in next week's Farm Weekly.

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The CBH Board are holding a "gun" to the head of shareholders: pass the motion or we will act. This issue is symptomatic of a push by conservative board members to strengthen their position at board level. Esperance Growers deliver to fourteen receival points which have the capacity to handle approx. 2.5 mill tons. Three recieval points in the Esp Zone are earmarked for rationalisation. It's time the process of network rationalisation was strongly driven in the Kwinana Zone as currently this Zone may well be cross subsidised by others? Why is the Geraldton Zone being treated differantly to the Esp Zone in that Geraldton the boundary is being pushed south to retain two directors? All directors have an absolute responsablity to represent all shareholders, not just those within their own zone. It's time some directors got out of their own patch and had a good look at the whole CBH network!!! Moving forward it is increasingly evident that $2 shareholders (growers) are looking for voting rights linked to patronage (tonnage). The difference between smaller and larger growers is too significant to continue to ignore.
Posted by Xd, 10/09/2009 12:01:46 PM, on Farm Weekly

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Esperance grower Mic Fels.
Esperance grower Mic Fels.

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