Four draft resolutions have been sent to Kerry Co-op advisory committee members ahead of an advisory committee meeting next week.

One of the proposed rule changes that has set alarm bells ringing is the setting of a minimum floor of 20 shares owned if a farmer wants to seek election to the Kerry advisory committee. New entrants get one share on entry. At a price of €600 per share, it is easy to see how this cohort of suppliers would not be represented if that rule is passed.

If these rule changes were passed it would mean some existing advisory members would no longer be eligible

The other proposed rule change to go in front of the advisory committee next week is that it would be a requirement to be a member of an advisory committee to be a board director. If not, it would mean automatic removal from the board.

If these rule changes were passed it would mean some existing advisory members would no longer be eligible, and crucially Kerry Co-op chair Mundy Hayes, would be ineligible for the co-op board.

Resolutions

The other resolutions are on the notice for special general meetings and importantly a rule setting the ratio at 5.9 plc shares for every co-op share ensuring the redemption scheme funds. Again, this is controversial and could jeopardise any future plan for buying the dairy business.

No date has yet been set for a special annual general meeting.

The advisory structure (the outer board) of Kerry Co-op is to hear the four new proposed rule changes next week.

The Irish Farmers Journal understands the board of Kerry Co-op have not yet signed off on these proposed resolutions.