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Proposed changes to the way the CI Coop is run have failed to attract the necessary support from the organisation’s members.
Meetings held in Jersey and Guernsey over the past 48 hours saw the Coop board bring forward proposals covering terms for the appointment and length of service of directors.
Three of the four motions were supported by more than 60% of the attendees, but the proportion of those in favour fell short of the two-thirds majority required for the changes to be implemented.
Chief Executive Mark Cox said the result was disappointing, but that the board respected the democratic right of members to give their view.
Around 130 people attended the two meetings, split equally between the two islands, with the results of the votes as follows:
Although separate breakdowns of voting were not made available, Mr Cox said the proportion of votes in favour had been higher in Jersey than Guernsey.
He added: “The board felt the proposals were in the best interests of the Coop and would enable us to comply with the corporate governance code [which is used by Coop organisations in the UK].
“It was good that members engaged with these proposals, and they exercised their democratic right in voting for or against.”
Pictured: Chief Executive Mark Cox said the result was disappointing, but that the board respected the democratic right of members to give their view.
Mr Cox said although the board remained committed to bringing in rule changes, it would now pause and reflect ahead of the annual meeting for members later this year.
The annual meeting in May will see members vote on proposals which could see the end or reduction of dividends paid out to members.
The level of dividend is has historically been determined by the financial performance of the business in the previous year, allowing customers providing share numbers at the checkout with the chance to earn a financial reward every time they make a qualifying purchase.
“Continuous pressure” on global supply chains and prices since Brexit and the pandemic was cited by the Coop as a major factor likely to lead to changes being put forward.
Details of the proposed changes are expected to be confirmed when the agenda for the annual meeting is published in April.
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