Worse Is Yet To Come?, page-146

I just need to highlight, as it is clear very few are aware, that under the Co-ops constitution the Board is made up of 9 farmer members elected each year by their regional farmers. Only a majority of shareholder farmers can out/sack the Board in one go and ONLY at the October annual AGM as part of the election of Board members. We have seen recently that three Board members (two farmers and one independent) resigned and one farmer will not stand again as he has served the maximum period allowed. If a change in the Board is to occur, and I agree the buck stops with the Board, it will not be before the AGM.

And while the constitution does allow for a Board spill in 'exceptional circumstances' (I would say this qualifies) it requires an 80% yes vote from farmers, which is unlikely to materialise as I suspect the vast majority of farmer/suppliers are unhappy and distraught with the current situation but accept it is 'better the devil you know'.

On a lighter note, I am aware that last year the CFO implemented a restriction of all discretionary expenditure in order to make budget and for example, stopped management from buying sandwich's for lunch time meetings. But at the same time, Gary Helou was flying in and out of Melbourne (Qantas Business Class) each week (and sometimes twice) at a cost of over $5k a week. Total hypocrisy.