Guest Contributor | Aug 30, 2019 | 0
Inclusive ownership structure proposed for Meatco
The proposed future structure of the Meat Corporation includes a co-operative wholly owned by participating Namibian livestock producers, says Kobus du Plesis, member of the working group and current chief executive officer of Meatco.
Speaking at a public meeting held in Windhoek this week, du Plesis said that after consultations, it was decided that government will only play an advisory role in the future co-operative. As a result, government is not expected to have any shares in the proposed future operational structure of Meatco should the plan be approved.
“Government can’t have shares in a cooperative entity,” added Oloff Munjanu, member of the working group.
However, according to the proposed structure, government will, for an interim transitional period of five years , have an effective veto voting right regarding major decisions taken by the co-operative as well as the operating and trading company.
The proposed operational structure and legal framework, submitted to the Ministry of Agriculture, Water and Forestry in November last year proposes that the future entity proposed will take form of a cooperative, 100% owned by participating Namibian livestock producers.
Drafting of the future operational structure and legal framework of meatco follows instructions by the Minister of Agriculture, Water and Forestry, John Mutorwa late last year.
The working group has suggested a five year transitional period. Du plesis said that this is to ensure a smooth transition so that current operations are not affected by the change before the permanent structure takes off.
“This is to ensure that the change in arrangements would not affect current operations,” he said.
In addition, the working group has also recommended that a supervisory committee, cooperative board and company board be set up to oversee the transition period while a cooperative board and company board made up of directors and independent experts would be set upfor the permanent structure. The board of directors for the cooperative will be appointed during the annual general meeting.
In the meantime, Meatco is currently hosting public consultation meetings across the country to engage members of the public.
The proposed future operational structure and legal framework is designed to ensure the company achieve global competitive edge, good corporate and sustainability.