Wheat management and marketing services company, AWB (AWB) released details of the proposed changes to its constitution on Wednesday that will benefit both wheat growers and shareholders.
AWB said if the old constitutional rules are kept under the new wheat export marketing arrangements, then it "will not be able to compete as effectively with grain traders and other wheat exporters".
It said the AWB Constitution includes a number of restrictions and obligations that are part of the old statutory wheat export marketing system that has already changed.
"The board of directors has agreed that it is in the best interests of the company as a whole to update the Constitution and improve our governance and operating systems," AWB said.
"To be the best wheat exporter in the future, AWB needs to keep up with the times and adapt its constitution and governance and operating structures to a more competitive wheat export market," he said.
The AWB Constitution includes restrictions and obligations that are part of the old statutory wheat In the 2007 annual report released to the market on Wednesday, chairman Brendan Stewart says the proposed changes will complete the process of board renewal started last year.
Under the proposed changes, all A class elected directors, including those elected at the February 2008 AGM will automatically retire when wheat export marketing arrangements change and the new Constitution has been adopted by the shareholders.
Shareholders will then vote to elect a new board, and the new board of directors will subsequently elect a new chairman.
Stockholders will have a chance to vote on the proposals at the company AGM on 12 February 2008.
"AWB has worked hard to maximise return for Australian wheat growers as manager of the Single Desk over the last 70 years and aims to be the best wheat exporter under new wheat export marketing arrangements," Brendan Stewart said.
Shares in AWB fell 7 cents or 2.3% to $3.00, 12.42PM AEST.
