Alliance Group chairman Murray Taggart has defended a decision to grant a waiver allowing a director to stand for a fifth term, saying shareholders will decide who they vote for.
Dipton farmer John Lindsay, first elected to the board in 2002, has served four terms and will retire by rotation this year.
Subject to waiver by the board, the board charter stated farmer-elected directors would normally have a maximum tenure of 12 years (four terms of three years).
The board's decision to grant Mr Lindsay a waiver to stand again has raised the ire of Meat Industry Excellence (MIE), whose chairman John McCarthy said it was ''disturbing''.
By doing so, the board was endorsing an incumbent director in the upcoming elections and it seemed to be ''entirely inappropriate'', he said.
The decision appeared to go against good governance and raised questions about succession planning on the board, Mr McCarthy said.
But Mr Taggart said the waiver did not mean that Mr Lindsay would get elected.
It meant shareholders had an opportunity to decide whether they thought continuity was important or they wanted someone new.
There had been a ''huge amount'' of change and there would be ongoing change at the top of the company.
It had to be very careful to give stability to stakeholders, not just suppliers and shareholders but also the likes of overseas customers, management and bankers, he said.
John Waller retired as an independent director last month and the search for a replacement has started.
In last year's farmer director elections, Jason Miller was dumped by shareholders and Waikaka Valley farmer Don Morrison elected. Mr Taggart was elected chairman last year, taking over from Owen Poole, who retired.
Chief executive Grant Cuff will step down in December after nine years in the position.
While Mr Taggart said he could understand Mr McCarthy's views, the board's job was to do what was best for Alliance Group.
A waiver had been granted on one other occasion but involved different circumstances, he said.
Maniototo farmer Dawn Sangster also retires by rotation this year and is entitled to stand for re-election as of right.
Nominations open on October 4.
Mr McCarthy said MIE would again endorse candidates in the upcoming co-operative elections, as it did last year.
