Kelly appointed to Co-op board

SIR Christopher Kelly, the man who carried out an independent review into last year’s crisis at the Co-operative Bank and wider Co-operative Group, has been appointed to the group board.

He has been named as a non-executive along with former Co-op Food non-executuve Simon Burke.

Following recommendations by Lord Myners, the Co-op is moving away from an 18-strong board populated by elected lay representatives from its regional boards, which represent its eight million members, and its independent societies.

Instead there will be 11 on the board and members will be able to make their voices heard through a 100-strong council and a “one member, one vote” system which will give them a say on big decisions.

Sir Christopher’s report, published earlier this year, blamed bad management and governance and said the bank’s merger with the Britannia Building Society, “probably should not have happened”.

The 158-page review, “Failings in management and governance”, pulled no punches into the reasons for the bank’s £1.5bn financial shortfall last year, which led to the Co-op Group losing all but a 30% stake in the lender.

Group chair Ursula Lidbetter said both men had “already made significant contributions” to the Co-op and “understand the challenges and opportunities we face”.

She said: “Sir Christopher’s recent report into The Co-operative Bank was detailed and incisive and was instrumental in helping us move on by learning from the mistakes of the past. His deep experience of finance, public policy and governance mean that he is ideally suited to the new role of senior independent non-executive Director.

“Simon likewise has a rich understanding and appreciation of the group following his time on the Food board and his extensive business acumen and experience will be a major asset for the main board. We are confident that these appointments, along with others that are currently under consideration, will help us to rebuild The Co-operative Group and restore it to its rightful place at the heart of communities across the UK.”