Co-operative Group members unanimously back reform, new “purpose” announced
Members of the Co-op have unanimously backed an extreme overhaul of the way the 150-year-old organisation is run following a tumultuous year for the group.
At a meeting held in Manchester yesterday (17 May) members voted in favour of a four-point resolution put forward by former City minister Lord Myners, which will see the current 20-member board replaced with one that is smaller and “individually and collectively qualified”.
Co-operative members will also be given powers to hold the new board to account with moves in place to create a ‘one member one vote’ concept.
Ursula Lidbetter, chair of The Co-operative Group, hailed the vote as “a highly significant moment”.
“There is a huge task ahead of us if we are to deliver the reforms necessary to restore the Group’s reputation and return it to health but the board will work hand-in-hand with our members to ensure that we seize this opportunity.”
Lidbetter added that it is “vital” the right changes are put in place as soon as possible to save the ailing business.
Following the vote, Richard Pennycook, interim Chief Executive announced a new “purpose” for the group which harks back to the business’ original roots of “championing a better way to do business for you and your communities”.
The news comes after difficult period for the Co-op Group – earlier this month Rev Paul Flowers, former chairman of the group's bank, which racked up losses of £1.9bn, admitted he was guilty of drug possession.