Reducing the size of the SunRice Board: At SunRice’s recent AGM, A-class shareholders passed a resolution to reduce the number of elected RMB members who sit on the SunRice Board from three to two, with effect after the next election, in December 2021. This resolution was proposed after consultation with the RMB.
The RMB’s decision to support SunRice’s proposal to reduce the size of its board was not taken lightly: from the RMB’s perspective, the proposal not only had to benefit SunRice, it also had to benefit growers.
The RMB will continue to have three elected growers on its Board, but after the next RMB election only two elected members will also go on to serve on SunRice’s Board. The RMB is currently considering the process for determining which two of the three elected members will be appointed to the SunRice Board – the related process will be advised to growers well ahead of the next round of RMB elections.
Verification of 2018-19 Export Price Premium and Freight Scale Advantage: The RMB engages a consultant to undertake an independent analysis of these two performance measures annually to ensure that growers continue to benefit from the sole and exclusive export licence that the RMB has issued to SunRice. The commencement of the 2018-19 verification process was delayed due to circumstances beyond the RMB’s, SunRice’s and the consultant’s control but the process has recently been concluded. The export price premium for 2018-19 has been confirmed at $25.8million (AUD) and the Freight Scale Advantage at $4.39million (AUD). The 2019-20 verification will commence in the very near term.
Vesting Review: The delayed release of the Terms of Reference for this review could complicate the conduct of the review significantly; both the RMB and the RGA have made separate representations to DPI about the need to avoid the situation where those undertaking the review are seeking to engage growers at the very time they are trying to get their rice crops sown or harvested.
For more information, please contact the RMB Secretary, Carol Chiswell, on 02 6953 3200.