"All positions will be available to contest in 2019 after the term of all elected representatives finishes this autumn" – Pat Scannell, shareholder in Kerry Co-op.
In 2010 Kerry Co-op was unable to pay a dividend because rules set by the financial regulator required the co-op to write down the value of investments which had lost value. In Kerry Co-op’s case, the value of One51 had to be significantly written down resulting in the co-op having no reserves. As such, the payment of a dividend to members could not take place. A significant number of shares in Kerry Group plc had to be sold to cover this loss and to create a new reserve.
This loss resulted in the ratio of Kerry Group plc shares to Co-op shares reducing from 6.5 to 6.12. There is no guarantee that this could not happen again if investments undertaken by the co-op do not work out. The main reason shareholders voted against the resolution put forward at the SGM of Kerry Co-op was to prevent the board from accessing any shareholder funds for a new investment strategy. Trust in the board is at an all-time low among Kerry Co-op members following the board’s attempts to mislead members regarding the outcome of the defeated resolution at the SGM.
Now that the SGM of Kerry Co-op is behind us, a mandatory electoral review has to be conducted this year under co-op rules. If carried out, this would be the third electoral review in Kerry Co-op’s history. In each of the previous reviews, there were new elections for all positions on the advisory committees and the co-op board as the electoral review will result in changes to electoral areas for Kerry Co-op.
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There is an understanding and expectation from the members of Kerry Co-op that all positions will be available to contest in 2019 after the term of all elected representatives finishes this autumn. Of course, sitting members having the option to contest these new elections, if eligible.
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Title: Letter: Kerry co-op dividend payment
"All positions will be available to contest in 2019 after the term of all elected representatives finishes this autumn" – Pat Scannell, shareholder in Kerry Co-op.
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In 2010 Kerry Co-op was unable to pay a dividend because rules set by the financial regulator required the co-op to write down the value of investments which had lost value. In Kerry Co-op’s case, the value of One51 had to be significantly written down resulting in the co-op having no reserves. As such, the payment of a dividend to members could not take place. A significant number of shares in Kerry Group plc had to be sold to cover this loss and to create a new reserve.
This loss resulted in the ratio of Kerry Group plc shares to Co-op shares reducing from 6.5 to 6.12. There is no guarantee that this could not happen again if investments undertaken by the co-op do not work out. The main reason shareholders voted against the resolution put forward at the SGM of Kerry Co-op was to prevent the board from accessing any shareholder funds for a new investment strategy. Trust in the board is at an all-time low among Kerry Co-op members following the board’s attempts to mislead members regarding the outcome of the defeated resolution at the SGM.
Now that the SGM of Kerry Co-op is behind us, a mandatory electoral review has to be conducted this year under co-op rules. If carried out, this would be the third electoral review in Kerry Co-op’s history. In each of the previous reviews, there were new elections for all positions on the advisory committees and the co-op board as the electoral review will result in changes to electoral areas for Kerry Co-op.
There is an understanding and expectation from the members of Kerry Co-op that all positions will be available to contest in 2019 after the term of all elected representatives finishes this autumn. Of course, sitting members having the option to contest these new elections, if eligible.
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