Positive change, positive future

1 November 2024

A process that led to the appointment of four new Member Directors has brought more diversity to the Board of Murray Irrigation Ltd (MIL). 

This procedure, which Chair Phil Snowden committed to prior to the general meeting in April, involved the appointment of an independent selection committee (ISC) to effectively facilitate the recruitment of Member Directors who are now being put forward for shareholder ratification at the upcoming 2024 AGM. 

Normal scheduled Member Director elections are due to return in August/September 2025. 

Mr Snowden, who has been on the Board for seven years and is in his second stint as Chairman, says there has been “positive change” in the company and Board culture. 

He acknowledges there have been difficult times, but says even though there remain many challenges ahead, he has great confidence in the future, including the company’s long-term business viability. 

“There have been some tough periods over the past 20 years with droughts and water reform, especially with the Murray-Darling Basin Plan. But MIL is equipped to cope with change,” Mr Snowden said. 

“This has not always been an easy year,” he acknowledged.

“The general meeting in April was a difficult time for many people, but we have come through it and are now moving in the right direction. 

“We are in a unique position, because for the first time since privatisation there has been a process for seeking Member Directors with the skills required to enhance the Board’s capacity. At the upcoming annual general meeting shareholders have an opportunity to ratify the four Member Directors who were appointed in May after being recommended to the Board by the Independent Selection Committee (ISC) which recommended candidates to the Board,” Mr Snowden said. 

After the April general meeting and the resignation of three Directors, replacement Member Directors were needed to fulfil the constitutional requirement of at least six Member Directors.

While the Directors who remained on the Board after the general meeting could constitutionally have appointed any new Directors to fill the casual vacancies, they believed establishing the ISC was best practice in unprecedented circumstances.

As a result, there is now a Board with an effective range of skills. 

Nominations were called and the ISC was established comprising Robbie Sefton, Chris Kelly and Jennie Grigg. The committee conducted a thorough review process against a specified selection criteria relating to the skills required by the existing Board. 

After receiving recommendations from the ISC, the Board conducted a series of informal interviews with Member Director candidates, before resolving to support the recommendations and appoint Geoff McLeod, Gabrielle Coupland and Leanne Small as Member Directors to fill the casual vacancies, and also appointed Noel Graham AM as an additional Member Director. 

Shareholders will have the opportunity to support these appointments by resolution at the MIL annual meeting on November 27, 2024. 

Finley businessman Chris Kelly, as a member of the ISC, believes there is now a diversity on the Board of MIL which is consistent with many successful companies. 

“The new Directors have allowed a reset with a Board that can still be robust, achieve consensus and most importantly carry out its purpose,” Mr Kelly said. 

He said the ISC provided the rationale and reasons for its recommendations and believes the Board made a wise choice with the appointments. 

Mr Kelly said it was interesting that members of the ISC did not know each other prior to the committee being formed, but immediately established a great connection and “our diversity and expertise were very complementary”. 

He described the process as “clear and concise … all applicants were interviewed by Zoom and equal time was given to each one with uniformity of questions with follow-up if required. There was a good range of worthy applicants with credentials that we considered could contribute to the success of the Board.” 

Mr Kelly said all reports anecdotally of MIL are positive and “I think all MIL shareholders just want the Board to function as a Board. Communications have improved, which is of great importance as sometimes decisions can be hard to understand and are better received if conveyed with clarity.” 

He highlighted the need for a diverse and effective Board as “MIL is one of the most important businesses in this region, with many businesses and people influenced by the level of its success”. 

“The process we followed is very different to anything in the past," Phil Snowden said.

"It was a unique position that has provided positive outcomes, which we hope is endorsed, along with the appointment of Robert Burbury for his second term as an independent Director, by shareholders with their vote at the AGM.”