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The Midcounties backs call for urgent reforms in the Co-operative Group Midcounties backs call for urgent reforms in the Co-operative Group
(about 5 hours later)
Britain's largest independent Co-operative society, the Midcounties, is to throw its weight behind the urgent reforms of the Co-operative Group that Paul Myners has warned are needed if the 150-year-old mutual organisation is to survive.Britain's largest independent Co-operative society, the Midcounties, is to throw its weight behind the urgent reforms of the Co-operative Group that Paul Myners has warned are needed if the 150-year-old mutual organisation is to survive.
Midcounties and 20 other independent societies control 22% of the Co-op Group. Its backing for the reforms comes at the start of a crunch week, culminating on Saturday with a vote in Manchester on the Myners proposals.Midcounties and 20 other independent societies control 22% of the Co-op Group. Its backing for the reforms comes at the start of a crunch week, culminating on Saturday with a vote in Manchester on the Myners proposals.
Lord Myners, who quit the Co-op board last month, has called for a new board made up of better qualified individuals together with a national membership council of 50 people who represent members' views, and a nominations committee to oversee board appointments.Lord Myners, who quit the Co-op board last month, has called for a new board made up of better qualified individuals together with a national membership council of 50 people who represent members' views, and a nominations committee to oversee board appointments.
A month ago, Midcounties spoke out against the Myners proposals after an outline of the former City minister's ideas was rushed out after the sudden resignation of the Co-op chief executive Euan Sutherland. He quit after details of his £6.6m two-year pay deal were leaked to the Observer.A month ago, Midcounties spoke out against the Myners proposals after an outline of the former City minister's ideas was rushed out after the sudden resignation of the Co-op chief executive Euan Sutherland. He quit after details of his £6.6m two-year pay deal were leaked to the Observer.
Patrick Gray, president of the Midcounties, said the full 180-page report published by Myners last week had helped to address some of the concerns raised by his members. These included how the views of members were heard and how independent societies were represented.Patrick Gray, president of the Midcounties, said the full 180-page report published by Myners last week had helped to address some of the concerns raised by his members. These included how the views of members were heard and how independent societies were represented.
At the Midcounties annual general meeting over the weekend, more than 400 members voted for a four-pronged resolution that will be put forward at the Co-op meeting in Manchester, with no votes against. The resolution calls for the creation of a board of directors elected by members, a structure that gives members powers to oversee the board, a "one member, one vote" system and provisions to protect against demutualisation.At the Midcounties annual general meeting over the weekend, more than 400 members voted for a four-pronged resolution that will be put forward at the Co-op meeting in Manchester, with no votes against. The resolution calls for the creation of a board of directors elected by members, a structure that gives members powers to oversee the board, a "one member, one vote" system and provisions to protect against demutualisation.
The Midcounties support is not a sign that the Myners proposals are being endorsed in their entirety, but a sign that the independent societies are prepared to back change. The regional boards, which control 78% of the Co-op, will also need to support the plan.The Midcounties support is not a sign that the Myners proposals are being endorsed in their entirety, but a sign that the independent societies are prepared to back change. The regional boards, which control 78% of the Co-op, will also need to support the plan.
Gray said: "The Co-operative Group owes Lord Myners a big debt because he has forced fundamental reform to the governance to the top of the agenda. The group now urgently needs to bring its level of debt down and to establish a streamlined, competent board which can swiftly and cohesively address the critical business issues."Gray said: "The Co-operative Group owes Lord Myners a big debt because he has forced fundamental reform to the governance to the top of the agenda. The group now urgently needs to bring its level of debt down and to establish a streamlined, competent board which can swiftly and cohesively address the critical business issues."
Member meetings were held across the country over the weekend, including in London where members are understood to have voted to reject the Myners report and backed a call to seek the views of the former boss of the Co-op, Sir Graham Melmoth, who retired in 2002.Member meetings were held across the country over the weekend, including in London where members are understood to have voted to reject the Myners report and backed a call to seek the views of the former boss of the Co-op, Sir Graham Melmoth, who retired in 2002.
Myners, who chaired Guardian Media Group until he joined the Labour government during the 2008 banking crisis, has said that, without reform, banks could impose tighter lending conditions on the group or force sales of some of its most prized businesses. These include supermarkets and funeral homes, as well as pharmacies and farms, which are already on the block.Myners, who chaired Guardian Media Group until he joined the Labour government during the 2008 banking crisis, has said that, without reform, banks could impose tighter lending conditions on the group or force sales of some of its most prized businesses. These include supermarkets and funeral homes, as well as pharmacies and farms, which are already on the block.
Gray said that while a tight deadline was needed, consultation was necessary. "It is also essential that the flawed constitution of the group is reformed from top to bottom and Lord Myners has provided an interesting model of how that can be done but there is no deus ex machina solution to this problem," Gray said.Gray said that while a tight deadline was needed, consultation was necessary. "It is also essential that the flawed constitution of the group is reformed from top to bottom and Lord Myners has provided an interesting model of how that can be done but there is no deus ex machina solution to this problem," Gray said.
Myners said last week that all the independent societies (bar one, thought to be Midcounties) were lining up to back the resolutions at Saturday's special meeting.Myners said last week that all the independent societies (bar one, thought to be Midcounties) were lining up to back the resolutions at Saturday's special meeting.
Ursula Lidbetter, who chairs the group's chair, is though to be confident that the resolutions will be backed, although the outcome will depend on the seven regions which control the overall majority of the votes.Ursula Lidbetter, who chairs the group's chair, is though to be confident that the resolutions will be backed, although the outcome will depend on the seven regions which control the overall majority of the votes.