Fonterra reduces board size, announces director elections

Fonterra Shareholders' Fund has announced that the size of its board will be reduced from 11 directors to nine.

This change, which is in line with a recommendation supported by 88.49% of voting farmers last year, will take effect at the company's annual meeting in November.

The new board composition will consist of six farmer-elected directors and three appointed independent directors.

As a result of the reduction in board size, shareholders will be asked to elect two farmer-elected directors at this year's elections.

Sitting directors Leonie Guiney, John Nicholls and Peter McBride will retire by rotation, with Nicholls and McBride intending to re-stand for consideration as directors.

Guiney, who has served as a farmer-elected director for the maximum nine-year term, will not be re-standing.

Long-serving independent director Clinton Dines, who has also completed the maximum nine-year term, will retire and not be replaced.

Nominations for the director elections will open on August 9.