DEAR SIR: I refer to Lorcan Allen’s article, “The good, the bad and the ugly at Kerry Co-op”, in the Irish Farmers Journal on 21 March.
I commend him on pointing out the positive outcomes from last year:
Increased liquidity and share value increase from €300 to over €600.An estimated 30% of shareholder applicants (3,000) participated in the share redemption scheme.The arbitration process undertaken was successful.I oppose his views on the following:
That the communication of the share redemption scheme and its connotations “were poorly handled by the co-op”. As a milk supplier and shareholder, I experienced full and open communication on these matters. Prior to the AGM, information was made available, firstly through two regional meetings in the South Court Hotel, Limerick, and Ballyroe Heights Hotel Tralee. Further information meetings were held in Dingle, Caherciveen, Kilmallock, Templeglantine, Castleisland, Kilgarven, Rathmore, Listowel, Killarney, Kilrush and Ennis. Ifac accountants did a presentation at each meeting and Declan McEvoy, ifac’s chief taxation adviser, addressed many of these meetings. Questions were welcomed. They were also available afterwards for private consultations. Attendees were urged to seek personal tax advice from their own accountants. As regards governance – to ask all directors to resign and then get re-elected is considered bad practice in business. I, for one, prefer, the “withering on the vine” system. As regards the votes at the AGM, all three votes were carried, but one vote that locked in 5.9 plc shares for each co-op share needed a two-thirds majority to be written into the rule book. It got 65.8%, just short of the two-thirds.Proud
In conclusion, it is my opinion that the co-op was open and honest in its communications with its members. As a proud co-op member who is proud of our strong board, I dislike and disagree that “bad and ugly” accurately or fairly describe recent events. Let’s hope 2020 will be as successful.
DEAR SIR: I refer to Lorcan Allen’s article, “The good, the bad and the ugly at Kerry Co-op”, in the Irish Farmers Journal on 21 March.
I commend him on pointing out the positive outcomes from last year:
Increased liquidity and share value increase from €300 to over €600.An estimated 30% of shareholder applicants (3,000) participated in the share redemption scheme.The arbitration process undertaken was successful.I oppose his views on the following:
That the communication of the share redemption scheme and its connotations “were poorly handled by the co-op”. As a milk supplier and shareholder, I experienced full and open communication on these matters. Prior to the AGM, information was made available, firstly through two regional meetings in the South Court Hotel, Limerick, and Ballyroe Heights Hotel Tralee. Further information meetings were held in Dingle, Caherciveen, Kilmallock, Templeglantine, Castleisland, Kilgarven, Rathmore, Listowel, Killarney, Kilrush and Ennis. Ifac accountants did a presentation at each meeting and Declan McEvoy, ifac’s chief taxation adviser, addressed many of these meetings. Questions were welcomed. They were also available afterwards for private consultations. Attendees were urged to seek personal tax advice from their own accountants. As regards governance – to ask all directors to resign and then get re-elected is considered bad practice in business. I, for one, prefer, the “withering on the vine” system. As regards the votes at the AGM, all three votes were carried, but one vote that locked in 5.9 plc shares for each co-op share needed a two-thirds majority to be written into the rule book. It got 65.8%, just short of the two-thirds.Proud
In conclusion, it is my opinion that the co-op was open and honest in its communications with its members. As a proud co-op member who is proud of our strong board, I dislike and disagree that “bad and ugly” accurately or fairly describe recent events. Let’s hope 2020 will be as successful.
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