The board of Australian Wool Innovation has effectively gagged its directors from speaking to the media, passing a motion that will see only the chairman and chief executive at liberty to give comment.
AWI chairman Brian va Rooyen today announced the motion had been passed unanimously by the board a week ago.
The resolution states: "The Board resolved that only the CEO (or CEO delegate) and the chairman will speak to the media on matters relating to AWI, unless otherwise approved by the Chairman. Any directors that transgress this policy will be censured. All directors were reminded of their obligations under the Corporations Act."
Mr van Rooyen said it is best practice that a company operates to this policy.
"Recently woolgrowers would have seen media reports and statements made by directors that are contrary to company policy, which created confusion amongst woolgrowers and retailers about AWI's role," he said.
"This is why the board has passed this resolution.
"More importantly woolgrowers deserve to see AWI operating with a cohesive and professional Board managing their wool levy.
"It is also important for our international retailers to partner with a company that delivers on research, innovation and marketing opportunities and operates to their professional standard."