Quandary for directors after contradictory TAF vote
BUSINESSDESK: Fonterra directors face a quandary after two-thirds of farmer shareholders voted to support the controversial TAF scheme but failed to support constitutional changes which were intended to give them protections they said they wanted against possible influence from outside investors.
The first of two resolutions, requiring only a 50% majority to allow the TAF scheme to go ahead in principle, attracted 66.45% of the vote, which may be sufficient to allow it to go ahead.
Fonterra chairman Sir Henry van der Heyden had said earlier that a bare majority of farmer support for TAF would see the scheme stall.
To help it over the line, the Fonterra board also proposed six protections for farmer shareholders in the dairy cooperative, requiring 75% farmer support, but which only achieved 72.8% support.