The entire Murray Irrigation Limited Board has announced it will resign, following controversy over the performance of two directors.
The board has avoided the calling of an extraordinary general meeting by announcing that each director will resign after the company’s annual meeting on November 28.
Chairman Bruce Simpson said the decision should have no impact on the management or the operations of the company.
An independent report highlighted poor behaviour and dysfunction built up over many years, which ultimately led to a vote of no-confidence in directors Chris Brooks and James Sides.
Mr Simpson said the five directors who took the no-confidence vote have put their shareholder responsibilities first and foremost and have taken the unprecedented step to end the bitterness that continues to simmer among some of the shareholder base.
‘‘Their decision was supported by current board member James Sides, who was not successful in being re-elected to the board, and Chris Brooks who also agreed to resign.
Mr Simpson said recently elected directors Waander van Beek and Phil Snowden have shown an extraordinary level of courage and commitment by also offering to resign.
After the board’s resignation, there will be an interim governance structure. It will be guided by independent advice being sought from experts in corporate transition. An interim governance structure is critical to ensure an appropriate level of company oversight.
That advice will also determine when an election of directors should be held and in what format.
Candidates will be subject to rigorous assessment by an independent, top-tier selection company and the new board is likely to include four shareholder directors and three independents. The CEO will be appointed by the managing director, subject to a change in the company’s constitution.