Co-op welcomes Lord Myners’ review report

The Co-operative Group has welcomed former City minister Lord Myners' review report that suggests urgent radical reforms to save the UK's largest mutual.

Ursula Lidbetter, chairman of the Co-op, said they were very grateful to Mr. Myners' and his team for producing such a detailed & comprehensive review of the struggling mutual in a short span of time.

Commenting on the review, Lidbetter said, "As Group Chair, I see this as essential and urgent work that is critical to our future, enabling us to build a more effective organisation which can deliver for all our members, customers and colleagues."

Lidbetter added that the Co-op's board had clarified its commitment to a sweeping and fundamental reform of the group's governance, adding that a resolution containing four key principles on reform would be tabled before members at a general meeting in May this year.

In the 184-page review report, Lord Myners has warned that the Co-op is facing dismantlement unless it undertakes radical reforms very soon. He criticized the group's management for taking irresponsible decisions, such as takeover of the Britannia Building Society; and accused the group's board of still sticking in near ruinous failure of governance.

He urged the group's six hundred elected members to vote in favour of reforms suggested in the report, in spite of the fact that the reforms would reduce their influence and control over the group's operations.

Lord Myners claimed that implementation of measures suggested by him could still reform the struggling and debt-laden business.