Having read in last week’s Irish Farmers Journal that Kerry Co-op plans to hold an EGM in August or September I would like to hereby suggest the following new rules and rule changes be voted on at that EGM.

The creation of a rule where every Kerry Co-op share is redeemable at a ratio of six Kerry Group shares.

Most importantly make it so if this new rule is ever to be overturned, each shareholder (A, B, C) in Kerry Co-op will be entitled to have a vote on the rule change.

Currently Kerry Co-op rules require the entire co-op board to sign off on the sale/transfer of co-op shares. The next board meeting where this is scheduled to take place is in August so, as things stand, nobody can sell their co-op shares for the rest of the summer. This lack of liquidity is disastrous for the price of the co-op shares on the grey market.

A rule change is necessary to empower Kerry Co-op’s CEO and any future secretary of the co-op to instead be assigned the responsibility to sign off on the sale and transfer of co-op shares on a weekly basis, this liquidity will greatly improve the price of co-op shares on the grey market.

The current “cash for shares” scheme operates twice a year, if someone buys co-op shares on the grey market in December, they will have to wait until June to cash in those shares. The fact that people have to wait for up to six months to cash in co-op shares after buying them exposes the purchaser to substantial risk. This risk depresses the price of the co-op share on the grey market.

I would suggest a rule ensuring that Kerry Co-op operates its share redemption scheme once a month instead.

I believe in this scenario the grey market price of co-op shares will become 95% of the see-through value of the shares. All correspondence on this matter should be online only. This will save hugely on administration. Instead of just share for cash I believe share certs could be issued which would offer flexibility. This way if the Kerry Group share price has taken a dip at the time of the redemption, then at least the person can wait to sell their Kerry Group shares at their own discretion.