The troubled Co-operative Group will cut its board by half as it announced widespread changes to its governance structure.
Keen to move on from the worst year in its history in which the 150 year-old group posted huge losses of £2.5bn, the company is proposing a board that will comprise mainly of independent directors alongside two executive directors.
Richard Pennycook, interim chief executive, of the Co-operative Group said the changes were a “significant step towards meaningful reform” and “will mark the end of the rescue phase for the group.”
The board will reduce from 18 to nine while a council, which will hold the board to account, will consist of a maximum of 100 members and will be led by a president to be elected for a two year term.
Ursula Lidbetter, chair, The Co-operative group, said the reforms represented “the final crucial step” in delivering the necessary change to restore the Group and return it to health.
She added: “This has been a process built on co-operation, focusing above all on creating a society where every member has a voice in shaping the group‘s future.”
Another important reform is a move to “one member, one vote.”