At a special general meeting (SGM) of Lakeland on Wednesday 27 September, the co-op’s shareholders rejected the extension of the board term from a maximum of two four-year terms to three four-year terms.

This means that a board member can serve a maximum of eight years as opposed to a maximum of 12 years.

Long-term benefit

Calling the SGM earlier this month, a letter from to suppliers said it was looking to make the governance changes “following discussions and suggestions made by members at our most recent AGM” and that the rule changes should be made “for the long-term benefit” of the co-op.

The co-op had enlisted the direction of ICOS, who said rule changes should be made aimed at strengthening “the governance of your society”.

This is the second time Lakeland shareholders rejected the extension of the board term.

Other rule changes on the night did pass, however.

The shareholders voted in a rule change that will see no board member serve more than the three successive four-year periods.

They also voted to “co-opt up to three young farmer members” to serve on the regional committees. A young farmer is defined as being under the age of 35.

The final approved rule change was an administrative one relating to the updating of the co-op rules.

Lakeland has over 2,500 suppliers between Northern Ireland and the Republic of Ireland and it processes 1.2bn litres of milk annually.

Positives

Aside from this blip, it has been a positive period for the co-op.

Earlier this month it opened its new dryer in Baileborough, Co Cavan, making the site one of Europe's largest milk powder plants. The latest investment cost €40m.

Listen: €80m milk dryer investments in a week

Lakeland suppliers vote to reject board term extension

The supplier base of the co-op had been asked to vote on extending the term of the board. However, the progressive step allowing young farmers on to committees was passed.