Loans and Finance

Loans and Finance

Text

News and information about loans, money, debt, finance and business issues.

Wednesday, May 07, 2014

The Co-op's Ruinous Failure of Governance

Lord Myners has written a damning report on the governance of the Co-op Group, and has warned that unless it undertakes radical reforms "very soon" it risks being dismantled.

Lord Myners said that the Co-op needed to urgently create a professional board, and warned the organisation could not continue with its "deplorable governance failures" and had to address a "democratic deficit" that allowed a small elite at the top to run the business.

Lord Myners has also proposed the creation of a new 50-strong National Membership Committee to provide oversight of the top body, and the extension of voting rights to all individual members of the Co-op:
"I would say that the group board and many of the regional boards are still stuck in denial over this near ruinous failure of governance, whereas the vast majority of ordinary members feel justified anger. Radical decisions on governance structure need to be taken very soon - and with resolution - if the Co-op, as my mother knew it, is to be saved." 
However, in order for his report to have some beneficial effect for the Co-op and its members, his recommendations need to be approved by a vote of the 600 "elected members".

The question is, will the Co-op turkeys vote for Christmas?

No comments:

Post a Comment