Co-op votes for change, but timescale questions linger
THE Co-operative Group is set for a major change in how it is run after a crucial vote in Manchester at the weekend.
The crucial vote on proposals, submitted by former City minister and former Co-operative non-ececutive director Lord Myners, were accepted unanimously at the group’s HQ at Angel Square, and the question now is when they will be implemented, rather than if.
The most controversial element, as far as the regional boards which wield signifcant power at the mutual are concerned, is losing their influence on the group board.
Lord Myners said this should be a board of experienced business figures, the majority non-excecutives, with a track record of running a multi-billion pound organisation. He fears now there may be delay.
In interviews after the vote he said: “My biggest single fear is that the process of discussion will be used as an excuse not to do much very quickly,” he said.
As well as cutting the size and composition of the board, meeting backed the creation of a structure that holds the board to account; the principle of one member one vote; and provisions to avoid demutualisation.
Discussions over how to implement these principles began on Sunday. Members of the regional boards, which currently control 78% of the Co-op – held talks with group chair Ursula Lidbetter.
The board will meet before the end of this month to produce a timetable for applying the new governance principles.
The regions are thought to be keen to retain a presence on the board, where they currently hold 15 of the 21 seats, even though under Myner’s proposals they would no longer have a place.
The influence of these regional board members is expected to be at the crux of the discussions with Lidbetter; further votes will need to be held for changes are to be made.
At the AGM, which was held in private, there was a revolt against a remuneration report, with 30% of votes against the pay deals for former CEO Sutherland and others .
Only members of the regional boards and independent societies can go the AGM, which is attended by approximately 150 individuals.
