Grains Growers Association (GGA) director Gerry Lane has followed the lead of his colleagues Spencer Millear and Bruce Smith and resigned from the board of GrainCorp.
Mr Lane said the abolition of the GGA’s foundation share in GrainCorp earlier in the year meant the two organisations could go their separate ways.
He said the upside of the split was that the long-held conflict of interest between GGA and GrainCorp could be removed.
“A lot has changed in the industry since the foundation share provisions were written up - both in terms of GrainCorp and corporate governance generally,” he said.
Mr Lane's resignation means that three of the GGA directors on GrainCorp have resigned, with three remaining, GGA chairman Dan Mangelsdorf, Rick Freeman and John Eastburn.
Mr Lane said he hoped the other three would follow his lead, in the best interests of both organisations, but Mr Mangelsdorf said he would be staying put on the GrainCorp board.
“Remember that although the foundation share is gone, GGA still has a sizeable monetary investment in GrainCorp,” Mr Mangelsdorf said.
He holds a private opinion on how many GGA directors should sit on the GrainCorp board, but declines to elaborate, saying he does not feel it is appropriate at the moment.
The resignation will assist the GrainCorp board reform process following the removal of the foundation share, Nigel Hart, GrainCorp company secretary, said in an announcement to the ASX.
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