SYSTEM APPROVED

Bay of Plenty Beacon, Volume 1, Issue 58, 4 September 1939, Page 3

SYSTEM APPROVED

SELECTION OF DIRECTORS RANGITAIKI SUPPLIERS SATISFIED The annual meeting cf the Rangitaiki Plains Dairy Co. Ltd. after a discussion decided not to adopt a notice of motion tabled by Mr I. M. Withy dealing with the retirement of directors. Actually the voting took place on an amendment to have the notice drafted in legal form and to ta,ke a postal ballot on the motion, but on the defeat of this amend nient the notice was withdrawn. Mr Withy said that the notice had been explained fully in a press article. The idea was to awaken the interest of suppliers generally to the complete application of the principles of co.operation. The motion was not intended as a vote of noconfidence in the chairman of directors, and no personalities were intended or implied. The matter had been discussed first a>'t a time when there were 110 difficulties in view. FRESH BLOOD. Mr Withy said that it would infuse fresh blood on to the directorate from time to time, but Jt was not intended to be used to turn out directors. He was quite sure members of the farmers" union had confidence in Mr McCraclcen and esteemed him. (Loud applause). Mr A. E. Lambert said he would move an amendment that the motion be drafted bj r the coinnany's leiial advisers and a postal ballot taken on it. There was no thought of an attack on the directors. Tn the nast candidates had been defeated for the directorate, and it might be claimed that a coterie controlled the election of directors. This method would introduce fresh men automatically. Mr Clelarul wanted to know what difference the new system would make? Thev already had the power to replace directors. COMPULSION. Mr J. Mullins saw compulsion in the motion. A position was gradually growing in the farming industry whereby everything was regimented and controlled. A man could not do as he liked. (Applause). He continued that it had been given out that the motion had come from the farmers' union. Actually it had come from the executive 0! the. union. He was opposed to compulsion. and for that reason he could not. support the motion. Mr lan B. Gow said he supported the motion. The articles of association passed bv shareholders were the rules by which shareholders agreed to play the game, and any compulsion was imposed on 'themselves voluntarily. There was a vast, difference between that and compulsion imposed by others. Mr Gow thought that when a director retired and sought re-election the dice Ave re a little loaded against any new man. They were fortunate indeed to have a chair man like Mr McCraeken said Mr Gow. The meeting applauded this remark. Mr Gow added that he sunportcd the motion because he felt that the advantages outweighed the disadvantages. LEAVE WELL ALOXE. Thev should leave well alone, thought Mr C. T. Smith. The company had a history they could all bo proud of. The motion could only serve as a backdoor means of attacking a noopular chairman. (Cries of NO). Mr McCracken said that as a director he w?s diffident about speaking, but he felt that shareholders should have the right to rc-elect retiring directors to vacancies. If anything went wrong Avith the affairs of the company the whole board could be thrown out. That had happened ir. the past in other companies. Mr R. W. Dunning said that statements had been made that the motion did not come from the union, but it did. The meeting had been advertised, but as so olUen happened these days people did not roll up. RED lIERPJNG. Sneaking to the amendment Mr "Withy .said che compulsion issue was a red herring. He said that the sympathy vote undoubtedly existed, and people Avere inclined to be apathetic and let things stand as they Avere. Suspic'on attached to public men and this often acted agains't new candidates. This aoathv oA*er their,own business should be broken up. ami the motion mit forward was intended to do this. (Continued at foot of next colvr.n r)