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 McGinniss returns to CBH board as co-op support holds strong 

McGinniss returns to CBH board as co-op support holds strong

16 Mar, 2010 05:26 PM
MERREDIN graingrower Mick McGinniss has been returned to the CBH board, while the two sitting directors have been overwhelmingly re-elected after campaigning on clear co-operative principles.

The Western Australian Electoral Commission (WAEC) finalised results of the 2010 CBH director elections on Tuesday, counting votes from districts 2, 3 and 4 where the elections were held.

Kevin Fuchsbichler, Bruce Rock, was re-elected as a director in district 3 and Trevor Badger, Pingrup, was re-elected in district 4.

Both sitting directors were re-elected for a second term after gaining more than 50 per cent of the vote.

Mr McGinniss was re-elected after overtaking Derek Clauson, when preference votes were distributed.

CBH Group chairman Neil Wandel issued a media statement congratulating Mr Fuchsbichler and Mr Badger on their re-appointment and welcoming Mr McGinniss on his return to the board.

Mr McGinniss served on the CBH board from 2002 to 2009, but was voted out last year when Pingelly farmer and co-operative supporter, John Hassell was elected.

"I look forward to continuing to work with Mr Badger, Mr Fuchsbichler and Mr McGinniss in serving the interests of WA grain growers," Mr Wandel said.

"The grains industry has undergone a lot of change since deregulation, bringing with it both challenges and opportunities.

"The board is committed to working together to represent the best interests of our grower shareholders and ensuring the CBH Group remains viable and relevant in this changing industry environment."

Highly regarded Esperance-based director Steve Tilbrook, whose three year term will expire at the AGM, did not renominate for this year's elections, citing frustration with the company's lack of commercial focus and politicisation.

Mr Wandel acknowledged the important role Mr Tilbrook played during his time on the board.

"On behalf of the board I take this opportunity to acknowledge the outstanding contribution made by Steve Tilbrook to the CBH Group and the industry as a whole during his eight year tenure as director," he said.

"Mr Tilbrook played a significant role as a director in the CBH-Grain Pool merger in 2002.

"His knowledge and experience during this time is testament to the CBH Group's strong position today.

"He brought a lot of passion and experience to the board and no doubt he will continue to have an active interest in the future of the grains industry."

Mr Wandel said Mr McGinniss, Mr Badger and Mr Fuchbischler would join newly appointed director David Willis in the formal declaration of directors at the CBH Group's upcoming annual general meeting (AGM).

The CBH Group announced the appointment of Mr Willis in December last year after Ken Palmer retired as a director following 17 years on the CBH and Grain Pool boards.

Speaking to Farm Weekly, Mr McGinniss said it was now time to "get down to business" and to "focus on getting the job done".

"We need to keep the co-operative focused on what's best for shareholders," he said.

"That's the board's job."

Mr McGinniss said he saw two major challenges ahead for CBH.

One will be to keep CBH commercially focused and the second to ensure its grain marketing arm Grain Pool had a "clear focus" on understanding its place in the grain market, and found a better way of delivering value to CBH grower shareholders.

Reading between the lines of the election speeches and material, he said it appeared the rest of the CBH board was on the same page as him in terms of its view of Grain Pool's current role and performance, and where it should be heading structurally.

During the campaign, his district 2 rival Gary McGill described the elections as the crossroads elections, positioning the campaign as a fork in the road in terms of structural reform, and highlighting the debate between CBH remaining a co-operative or moving to a corporate structure.

But Mr McGinniss said he did not agree with the terminology.

"They are not my words," he said.

"The biggest challenge we face is farm profitability and CBH has a role to play in assisting that and to help farmers remain competitive.

"The CBH board has to address structure and over time it will.

"The board is already addressing structure and will be talking to shareholders during the course of this year.

"The best way to address structure is performance."

The vote was close in district 2, with Mr Clauson leading after primary votes were counted.

However, Mr McGinniss overtook the outgoing WAFamers Grains Council president during the distribution of preferences, aided by Mr McGill's preferences.

In the District 2 campaign, none of the candidates recommended specific preference allocations to shareholders.

It was a similar case in Districts 2 and 3.

Mr McGinniss said his desire to get back on the board was sparked by a meeting in Merredin late last year, where Esperance grower Nils Blumann put forward a motion that proposed to demutualise CBH and see it listed on the Australian Stock Exchange.

He said he did not sign the proposal and was one of four at the meeting who didn't vote for it, while others abstained.

Mr McGinniss said he decided to run for the board again because there was a lack of understanding about what the current co-operative structure delivered to CBH shareholders, and confusion over what the corporate structure was capable of achieving for them.

Results

Distr ict 2

  • Mick McGinniss - 325
  • Derek Clauson - 319
  • Gary McGill - (141 after primary votes)
  • Andrew Crook (92 after primary votes)

TOTAL - 634

District 3

  • Kevin Fuchsbichler - 391
  • Des Hickey - 91
  • Colin Butcher - 77
  • Donna Lynch - 57

TOTAL - 616

District 4

  • Trevor Badger - 350
  • Peter Rundle - 129
  • Paul O'Meehan - 104
  • David Adams - 57
  • Donald Wallace - 36
  • Andy Duncan - 23

TOTAL - 699

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Re-elected to the board: Mick McGinniss.
Re-elected to the board: Mick McGinniss.
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