Co-op group members back radical reforms by Lord Myners

This article was last updated on April 16, 2022

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The Co-operative Group members have unanimously backed the Lord Myners’ radical reforms on Saturday by voting in favour of a four-point resolution on governance reforms.

The fresh approval paves the way for the mutual to begin the implementation of proposed overhaul by Lord Myners, which include creating “a board of directors elected by members that is individually and collectively qualified to lead an organisation of the size and complexity of the Co-operative group”, after a scathing review.

The proposals for the food-to-funerals business follow an year of crisis which made the Co-op to suffer a £2.5 billion annual loss.

The interim chief executive, Richard Pennycook has told members at a special meeting in Manchester that it had to reform to appease a syndicate owed £1.4bn, with £100m in annual interest payments “sucked down to the City of London”.

The chair of the Co-operative Group Ursula Lidbetter has said the unanimous vote in favour of wide-ranging reforms as a “highly significant moment” for the mutual: “I am delighted that our members have made clear their commitment to far-reaching reform of our governance with this unanimous vote.

“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.

“It is vital that the right changes are put in place as soon as possible to build a more effective organisation for our members, customers and colleagues.”

The Business Secretary Vince Cable has also hailed the unanimous voting as a step in right direction through indicating that the “radical solutions are needed to get the Co-op back on track.”

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