CBH starts governance review after turbulent boardroom feud

Australia’s biggest co-operative has commissioned an independent review of its governance structure following an ugly four months in the boardroom which risked tearing the business apart. Co-operative Bulk Handling has engaged a Perth-based third-party consultant to conduct the review following the turbulent period, which started with leaked information about whistleblower complaints about inappropriate language by former chairman Wally Newman. That was followed by a highly publicised board rift over allegations former director Trevor Badger disclosed confidential information. Mr Badger was narrowly voted off the board by CBH members at a special general meeting in May, dividing grain grower members across WA. The series of events triggered concerns about CBH’s culture and prompted widespread calls by growers and business leaders for a review of its structure and processes. CBH chairman Simon Stead said the review would look externally to assess best practice from co-operatives and mutuals around the world, and would be finalised by the February 2021 annual general meeting. Details of the scope will be finalised next week, but could include reviewing the election process for directors, the number of directors, ratio of independents to growers, length of tenure, and whether there should be minimum qualification requirements and a pre-selection process before standing. The result could lead to a radical reform in the governance structure of CBH. “In recent weeks and months, CBH’s governance structure has been the subject of many conversations with our members,” Mr Stead said. “Members’ views are welcomed by the board and to ensure we make considered decisions that capture the broad views of our grower members, we have made the decision to commence a review of our governance framework and processes. “Our goal is to look to the future of CBH’s governance so that we can continue our legacy of the past 87 years of creating and returning value to WA growers.” CBH also announced it would conduct a by-election to fill one of the two vacant seats on the board, following departures of Mr Badger and Mr Newman. Both were directors in the same area, district four. A decision on the second vacancy will be made when the governance review is finalised. CBH recorded its first loss in eight years in the year to September 2019, despite that year’s 16.4 million tonne harvest being the second-biggest on record. Even though group revenue rose by 10 per cent to $4.2 billion, CBH made a net loss after tax of $29.7 million, driven by a $119.3 million loss in its marketing and trading division.