Co-operative member accounts
- 28 June 2004
- Press contact
Arla Foods’ Board of Representatives approves further steps towards personal accounts
With 134 votes for, 13 against and one abstention, Arla Foods’ Board of Representatives voted to continue investigations into setting up personal accounts for co-operative members.
“12,000 Danish and Swedish co-operative members have discussed this issue during a lengthy democratic process. During these meetings, they have approved the current collective model and, at the same time, paved the way for the possible introduction of individual capital in the future. This is what the Board of Representatives has confirmed today,” said Knud Erik Jensen, Arla Foods’ Chairman.
One possible model for member accounts was presented to the Board of Representatives:
The Member accounts will build up through payments into the individual members’ accounts during the annual distribution of the company’s profits.
The member accounts will become an integral part of Arla’s equity and thus form part of the company’s capital base.
Payment from the accounts can only take place when a co-operative member resigns his membership.
Payment will be in four equal instalments in the year when the membership ceases.
Payments from the member accounts must not cause a reduction in the equity account. The proposed regulations applying to the membership accounts will be presented to the Board of Representatives at a meeting in December.
The final decision is dependent upon a response from the authorities regarding certain tax aspects.
Arla Foods’ Supervisory Board will continue to consider various capitalisation models including the conditions pertaining to the acceptance of new co-operative members.
Arla Foods is an international dairy company owned by 9,900 farmers from Denmark, Sweden, the UK, Germany, Belgium, Luxembourg and the Netherlands. Arla Foods is one of the leading players in the international dairy arena with well-known brands like Arla®, Lurpak®, Puck® and Castello®. Arla Foods is focused on providing good dairy nourishment from sustainable farming and operations and is also the world's largest manufacturer of organic dairy products.