CBH Group shareholders have voted against a resolution to change the governance of the grain handling and marketing cooperative.
At an extraordinary general meeting today 85 per cent of shareholders voted against the resolution.
A group of dissident grower-members wanted the board's composition changed from 12 directors comprising nine grower directors and up to three board-appointed directors with special skills.
They wanted a board of between seven and nine directors comprising four grower directors, three board-appointed directors with special skills and up to two executive directors.
Any resolution to change the CBH Group Articles of Association requires the support of at least 75 per cent voters.
CBH group chairman Neil Wandel said the Board's recommendation to vote against the resolution was in tune with shareholders who strongly supported the Board's view and rejected the resolution.
"The Board has conducted several reviews of its composition over the past five years," Mr Wandel said.
"This has brought us to conclude that the best model for CBH at present is the five-district election system which was approved by more than 75 per cent of members who voted only 10 months ago.
"Given this, and considering we're currently in the process of conducting the most extensive review of our structure in the history of the CBH Group, many shareholders shared the Board's disappointment with the timing of this EGM," he said.
"There is not one corporate governance model that suits all businesses and the most
appropriate model for a co-operative will differ to that for a listed company," Mr Wandel said.
The proposed change to the grain handler's board had the support of the Pastoralist and Graziers Association.
It was not supported by the WA Farmers Federation.
