News:
| New Capital Structure Proposal: Your Questions Answered |
 To assist members with their understanding of the new capital structures plan, StraightTalk posed a series of questions to Company Secretary Angus Waugh (pictured):The Board is proposing changes... why doesn’t it just decide the changes? First Milk is a member-driven business and this type of Rule change requires member approval so it is up to the members to decide what will happen. Over the next few months we will inform members of the proposals, explain what they mean, and talk to members about the advantages. Then members will be asked to vote for the changes at the AGM in November. Are the benefits of the new structure related to the size of the business? Will bigger farmers get a proportionally better deal than smaller ones? The rewards are linked proportionally to the amount invested, which in turn relates to milk volumes. Are the benefits related to the length of membership: do new members get the same benefits as members who have been in First Milk from the start? The longer a member has been in First Milk the more money there is invested. New members will have to invest a minimum capital requirement, based on the annual volume to be supplied. Do members need to take independent advice about the proposals? We will give members as much information as we can about the legal, financial and tax aspects of the new capital structure. However, we are not legally able to give advice on individual members’ circumstances and so we would encourage members to obtain independent advice on their own situation. What is happening at the moment? We are currently consulting with members through discussion groups and at the same time speaking to the Financial Services Authority, which regulates co-ops, about the proposals. What is the longer term plan? We will be sending out a detailed information pack on the proposed new structure in the late summer to each member for their consideration. Then, at the AGM in November, we will ask members to approve Rule changes to bring the new capital structure into effect. Your new capital structure would then “go live” in April 2009 with the issue of new preference Shares. What should a member do if they have a question? Contact their Area Manager in the first instance. If they are unable to help, the Area Managers will seek an answer from the Secretariat team. |