CBH Group changes director elections

Grain handling and marketing company CBH Group plans to simplify its zone system for electing directors after shareholders supported a resolution put forward by the board.

The company said 75.23% of shareholders who voted, supported the resolution put forward at today's Extraordinary General Meeting.

The vote count was conducted by share registry, Link Market Services, and supervised by external auditors Ernst & Young.

CBH Group chairman Neil Wandel said the vote showed shareholders strongly supported the board's view that there was a need to address the inequities which have developed in the number of directors elected from each of the existing four election districts.

"This will allow us to introduce a five district director election model which we believe is the best way forward," he said.

"It allows us to ensure the number of directors in each district is in line with the number of shareholders and grain produced in that district, while also ensuring that no one district has too much say in those elected to the board.

"The resolutions that have been passed will also allow shareholders to stand for election as a director in any district, not just that where their main grain growing interests are. They will also introduce a right for shareholders to remove a director by special resolution, which is an important improvement in our corporate governance."

"It's important to note that the changes won't affect the existing four port delivery zones, only the director electoral districts will change."

Mr Wandel said the changes to the electoral districts will be effective immediately and all shareholders will soon receive a letter notifying them of their new district.

The election process for the 2010 director elections, which begins soon after harvest, will be based on the new five district model.

Shareholders also overwhelmingly ratified the appointment of Peter Knowles as director until the 2012 Annual General Meeting.