Co-op Group members all set to vote on major overhaul plan
Representatives of the Co-op Group are all set to vote on a proposed major overhaul of the 150-year-old organization that will decide its future.
While former City Minister Lord Myners has proposed a major overhaul of the group, saying it is necessary to keep the group afloat; traditionalists within the group may oppose the proposal as are reportedly still denying problems.
Describing the group as one of the UK's biggest business calamities, Lord Myners said, "Radical decisions on governance structure need to be taken very soon - and with resolution - if the Co-op, as my mother knew it, is to be saved."
The proposed reforms include sweeping away the group's existing 20-member board of representatives, who currently include a plasterer, an engineer and a retired deputy head teacher. Lord Myners wants to slim down the structure of the board and equip it with professionally-trained directors.
Former Marks & Spencer (M&S) Chairman, who was appointed as a director of the Co-op Group in December 2013, will quit his seat following the imminent vote. He said it became clear to him the very first time he attended a board meeting that none of board members was capable of addressing the complex issues faced by the group.
Burdened with a debt of £1.4 billion, the Co-op Group recently reported a huge loss of £2.5 billion for 2013.