Co-Operative Members Back Radical Reform

Members of the struggling Co-op have unanimously backed a major overhaul of the group.

It paves the way for radical reforms proposed by former city minister Lord Myners to go-ahead.

A timetable for carrying out the changes will be agreed at a board meeting later this month, says the Co-op as it warned tough times lay ahead.

Lord Myners has said the Co-op is "not fit for purpose"

Some reforms will need rules to be altered, and so require further votes.

Co-op Group chair Ursula Lidbetter, who announced she will step down after a transitional period, said the mood at the AGM was "thoughtful and sober".

She hailed the vote as "a highly significant moment" for the group.

Sky's City Editor Mark Kleinman said no-one had been expecting a unanimous vote, and Co-op executives were "breathing a sigh of relief" at the result.

Lord Myners has proposed a major shake-up of the 150-year-old business which reported losses of £2.5bn for 2013.

The plans include sweeping away the existing 20-strong board of representatives from the Co-operative Group, who currently include an engineer, a plasterer and a retired deputy head teacher.

He wants to replace this with a slimmed-down "plc and beyond" structure staffed by professionally-trained directors.

The former Marks & Spencer chairman was appointed a director of the Co-operative Group in December but has announced he is to leave following this weekend's vote.

He has said it was apparent to him from the first time he attended a board meeting that not one of its members had the ability to address the complex issues faced by a group burdened with £1.4bn of debt.

Lord Myners believes that the Co-op will survive but faces the prospect of having to sell assets such as its £1bn funeral care business, in order to meet the demands of its lending banks, if it does not adopt reform.

Resistance to the changes saw chief executive Euan Sutherland leave the group earlier this year saying it was ungovernable.

The decision on the reforms was taken by representatives of its independent societies and affiliated organisations - who hold 22% of the vote - and others voting on behalf of its regional membership boards making up the remaining 78%.

Ms Lidbetter said: "This is a highly significant moment for the Co-operative Group and I am delighted that our members have made clear their commitment to far-reaching reform of our governance with this unanimous vote.

"There is a huge task ahead of us if we are to deliver the reforms necessary to restore the Group's reputation and return it to health but the board will work hand-in-hand with our members to ensure that we seize this opportunity.

"It is vital that the right changes are put in place as soon as possible to build a more effective organisation for our members, customers and colleagues."

More follows...

Anda sedang membaca artikel tentang

Co-Operative Members Back Radical Reform

Dengan url

http://terjunbebasopan.blogspot.com/2014/05/co-operative-members-back-radical-reform.html

Anda boleh menyebar luaskannya atau mengcopy paste-nya

Co-Operative Members Back Radical Reform

namun jangan lupa untuk meletakkan link

Co-Operative Members Back Radical Reform

sebagai sumbernya