The advisory committee of Kerry Co-op will consider a number of resolutions in the coming days to make significant rule changes to how the co-op is governed.
Among these resolutions is a proposal to set a minimum number of shares that a shareholder must hold in order to be considered for election to the advisory committee.
It is understood that this minimum number of shares would be set at 20.
Another key resolution is to set a ratio of Kerry Group plc shares to co-op shares. It is understood that the resolution will establish a ratio of 5.9 plc shares for every one co-op share.
A further resolution that is anticipated to have significant implications for the co-op is establishing the requirement that members of the board must first be a member of the advisory committee.
Notably, Kerry Co-op chairperson Mundy Hayes is not currently on the advisory committee.
Another resolution understood to be up for consideration is in relation to farms that are organised as companies and what role they will play in the co-op’s voting procedures.
The advisory committee is set to meet from Monday of next week (August 9), it is understood.
The co-op is planning to hold a ‘Special General Meeting’ (SGM) on the possibility of changing some of its rules.
Sources have indicated that the meeting is being provisionally scheduled for this month.
The co-op’s regular AGM was held in June. It is understood that recent issues in relation to Kerry co-op that have generated significant coverage – including a potential purchase by the co-op of Kerry Group’s dairy-related business – did not come up for discussion at the AGM.
These issues will likely come up for discussion at the SGM.
The co-op has also recently sold €77 million worth of group shares in order to fund a share redemption scheme for shareholders.
This is the fifth redemption scheme the co-op has undertaken. In order to fund it, around 665,000 shares were sold in late June.
The co-op’s shares in Kerry Group now stand at around 11.8%.