Fonterra shareholders will vote on a special resolution to tighten controls on the controversial Trading Among Farmers (TAF) scheme.
That vote, announced yesterday by chairman Sir Henry van der Heyden, will be held at a special meeting of shareholders on June 25, where there will also be the final vote on the scheme.
Concerns have been expressed about the need to ensure supplier-shareholders maintain 100% control and ownership.
In a statement yesterday, Sir Henry said it had always been acknowledged the size of the Fonterra shareholders fund had to be managed carefully to ensure 100% farmer control and ownership was protected.
Following input from Fonterra's shareholders council and due diligence advisers, the co-operative recommended tightening some of the previously agreed thresholds on the size of the fund "as a prudent measure".
Those thresholds would be enshrined in the constitution, subject to a 75% farmer shareholder vote. The meeting would be a satellite link over eight venues.
The resolutions were being finalised and would be in the voter pack mailed to shareholders at the end of this month.
Following this week's meeting, the board also gave its qualified view that the first four preconditions for the launch of TAF would be met, subject mainly to legislative changes and regulatory consents and confirmations.
The board would provide the shareholders council with a final report showing how the preconditions had been met, before it formally resolved that TAF be implemented, which was likely in July.
