Troubled Co-operative Group to shed board members in governance restructure

The Co-operative Group has announced proposals to reform its governance structure, so that it is “qualified to lead an organisation” of its size.

 

The proposals follow a consultation period with the group's members, and one of the key changes will be a reduction in the number of people on the group's board from 18 to nine. This number will rise to 11 when the member-nominated directors are appointed.

 

In a statement, the Co-op said that the new board would be “appropriate for the size and complexity of the group”. 

 

The new board would be composed of mainly independent directors, including a chair, five non-executive directors and two executive directors.

 

The proposals also include the creation of a 100-member council, which will have the power to hold the board accountable for poor business performance. A senate, elected by the council, will "act as a nexus for interactions between the council, the board, the executive and members".

 

The new structure will be underpinned by a system of one vote per member, for the purpose of evening out power among the group's members. This will allow members to vote on matters concerning the group’s future, such as the election of directors and the making of important transactions. 

 

If members vote in favour of the governance changes at the special general meeting on 30 August, recruitment will begin immediately.

 

“These governance reforms represent the final crucial step in delivering the necessary change to restore the Group and return it to health,” said Ursula Lidbetter, the Co-op Group's chair.

 

“This has been a process built on co-operation, focusing above all on creating a Society where every member has a voice in shaping the Group’s future. I would like to thank our members for their engagement in building a governance structure that strengthens the society and enhances member engagement and our unique democracy.”