Response to Trevor Badger's 8-page Letter:
Dear Member, I am writing to provide the following information to members in response to an 8-page letter which has been sent to growers from Trevor Badger.
As you are aware, your board is unanimous in seeking support for the proposed resolution that Trevor Badger be removed as a director of the co-operative.
CBH has no intention of engaging in ongoing public debate on the resolution.
It is however incumbent on your board to correct the material inaccuracies and misrepresentations contained in Trevor's letter, not only to alleviate concerns they may generate, but also to ensure members are voting with accurate information and are able to make a properly informed judgment on the resolution.
Material misrepresentations about CBH's financial position Trevor asserts that there has been a "negative $482 million change in equity in the last three years".
This is incorrect. In fact, as evidenced by CBH's audited financial statements which is extracted in Trevor's letter, there has been an increase in equity of $110m in the past three years (2016-2019).
Trevor asks the question "Are we broke?" and asserts that the CBH balance sheet has been "smashed to pieces".
This is misleading.
In fact, CBH currently has $1.8 billion in net assets and minimal gearing of 14 per cent.
We are very concerned about the damage these false and misleading assertions and inferences are having on the reputation and credibility of our co-operative.
We are particularly concerned because, as a director, Trevor owes duties to CBH, regardless of his current circumstances.
The comments contained in the letter only serve to undermine the co-operative's commercial standing and are not in the best interests of growers and CBH.
It is therefore important that those comments be corrected.
A continuing pattern of misconduct
The content of Trevor's letter provides several more examples of the type of behaviour that drove the board to seek his removal as a director.
Trevor compounds the breach at the heart of the Governance Committee proceedings by providing additional details regarding the identity of the individual who all CBH directors have a duty to protect.
Trevor further breaches his obligations of confidentiality by disclosing commercial and strategic matters in his letter.
He also misrepresents the process that has led to the Special General Meeting.
He has been afforded a fair process, conducted in accordance with CBH Board Policy.
He was offered ample opportunity to explain or justify his conduct prior to any determinations being made by the Governance Committee and the board.
The evidence of his misconduct was compelling, and the board was unanimous in seeking Trevor's resignation.
The operation of the CBH Board
The CBH board has always valued robust debate and individual contributions from all directors.
As the decision-making body for the co-operative, our board has shared responsibility for all decisions made on behalf of growers and Trevor has engaged in every one of those decisions as one of 12 directors.
To suggest otherwise is self-serving and inaccurate.
We all have access to the same information, and we all accept that our role comes with serious responsibilities and obligations, including our undertaking to uphold CBH's Director Code of Behaviour.
I am not interested in perpetuating Trevor's personal battles from the past. I, like all of the board, am interested in providing strong governance and working in the best interest of our growers.
Despite the loss of confidence from the entire board, by Trevor choosing not to resign, CBH has been forced to bring this resolution to members.
Your directors are seeking to achieve a cohesive, trusting and professionally functioning board for the benefit of the co-operative and members.
As Chair, I can assure you the co-operative has a steadfast focus on the needs of growers and the core of our business - providing you with the lowest cost export supply chain possible and continuing to invest in your network.
The future of the co-operative and its leadership is a significant decision which rests in your hands.
I am seeking your support to draw a line in the sand and move forward - to clear the way for the hard work of CBH members, employees and directors to deliver a co-operative that you can be proud of.
Please take the time to vote.
I am available to take any calls from members to discuss this matter or please speak with your local director if you have any questions.
