Which? accepts three of six governance resolutions put forward by pressure group

The measures will be voted on at the charity’s annual general meeting in November

The Consumers’ Association, the charity behind the Which? publications and brand, has backed three of the six resolutions submitted by a 400-member pressure group to reform the charity’s governance.

In a letter and voting pack that has been circulated to members of the charity, Which? has supported three resolutions from ordinary members out of 15 that will be discussed and voted on at the charity’s annual general meeting on 15 November.

The association has been criticised by some members for its pay and bonus policies for a number of years. A Third Sector investigation last year showed bonuses worth a total of £2.24m were set aside by the charity in 2015/16.

Of the ordinary resolutions submitted by members, the charity said it accepted a measure to make it seek a second legal opinion on whether it could run trading subsidiaries as profit-making enterprises. The charity had already put this into practice, it said, and recommends in its voting pack that members should support this amendment.

The charity’s articles state that the charity should not run commercial operations for a profit, but Which? said that legal advice obtained in 2007, 2008 and 2017 confirmed that none of its trading subsidiaries conflicted with the charity’s articles.

Which? is also supporting a request to make available audio recordings of all general meetings, and another resolution to consider creating a standing body of the entire council and 30 ordinary members that would meet twice a year and discuss the charity’s direction.

There have been controversies about the pay of the charity’s executive team and the controversial use of long-term incentive payments, a practice that was abandoned by the charity earlier this year.

But the charity has opposed three resolutions put forward by members, one of which calls for a reversal of changes agreed by ordinary members in 2007 to grant voting rights to associate members in council elections.

The charity’s voting pack for the AGM says its council recommends that members vote against this proposal, saying it could not work to support consumers’ interests while removing their right to choose representatives for its council.

Another resolution that the council recommends members should reject would reverse changes agreed by ordinary members in 2012 and increase the size of the council to incorporate 12 ordinary members.

Which? says in the voting pack that this resolution would contravene good practice for the charity sector, and that the current mix of nine elected and six co-opted council members “strikes the right balance”.

The charity is also opposing a resolution to change the level of support needed to requisition a resolution to 50 members or 5 per cent of ordinary members, and remove the cost of doing so from the charity’s membership.

Instead, the charity proposes capping the number of ordinary members needed to support resolutions being put to the AGM at whichever is the lowest out of 400 ordinary members or 5 per cent of ordinary members.

The council has also proposed another two special resolutions, one of which will allow a coordinated review by ordinary members of the notice of AGM, annual report and accounts, and council election ballot papers.

Which? has also backed a resolution to clarify rights where more than one person is named in a single entry on the charity’s register of members, which would ensure one vote per each ordinary member in the charity.

A Which? spokeswoman said: “The Consumers’ Association’s council is supportive of changes that take us towards better and stronger governance to ensure we can tackle consumer detriment for decades to come.

“We cannot support proposals we believe could undermine the effective governance of our organisation, but we have proposed alternatives where we can.”

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Pressure group puts forward six reforming resolutions to Which? AGM

Among them are calls for legal advice on whether the Consumers’ Association can seek a profit and for an increase in the number of elected members of council, which acts as the board

A 400-member pressure group calling for reform at the Consumers’ Association, the charity behind the Which? publications and brand, has submitted six resolutions to its annual general meeting designed to change the charity’s governance rules.

Among the resolutions are that the charity should seek legal advice on whether its articles allow it to run commercial operations for a profit and a call for an increase in the number of elected members of its council, which acts as the charity’s board.

The charity has in recent years faced criticism from some members about its pay and bonus policies, including a controversial long-term incentive plan that saw senior members of staff receive tens of thousands of pounds in bonuses.

The LTIP was scrapped by the charity earlier this year as part of a wider review of its pay policies.

To improve oversight of the charity’s board and executive team, a pressure group of more than 400 ordinary Which? members – who are shareholders in the charity – have submitted six resolutions to be discussed at its annual general meeting in November.

The charity has almost 6,600 ordinary members, although it is understood that fewer than 2,000 normally vote at the charity’s AGM.

Four ordinary resolutions will be discussed at the AGM and will need the support of more than half of those in attendance to pass.

The first calls for the number of elected council members to be increased from a minimum of nine to 12. Another says that all general meetings should be recorded and the footage made available to members.

A third ordinary resolution says that further legal advice should be sought on whether the charity is able to run commercial operations at a profit. The articles of the charity say that Which? should not run commercial operations for a profit, but critics of the charity’s leadership have claimed that some recent subsidiary operations, such as Which? Financial Services, have been created with the intention of doing so.

The final ordinary resolution calls for a “standing body” to be created comprising the charity’s trustees and 30 ordinary members, who should represent all 15 regions of the UK. The resolution says that the ordinary members should be coopted to the standing body for two years and should be selected randomly from volunteers at the charity’s AGM.

Also to be put forward are two “special” resolutions, which will require the support of 75 per cent of votes cast at the AGM according to Which? rules.

The first says for ordinary members should be able to see a notice of any resolution or statement to be discussed at a forthcoming general meeting when requested by 50 ordinary members. The second says that only ordinary members of the charity should be classed as “members”, essentially preventing associate members from having the same rights.

This second resolution is aimed at preventing Which? subscribers from voting on issues of charity governance – there are currently 700,000 subscribers, who can heavily outnumber ordinary members during votes.

In a statement, a Which? spokeswoman said: “We are actively considering these proposals as part of our wider governance review, which we committed to at our last AGM. 

“Our ordinary members will receive an update on our governance approach alongside our notice of AGM in August.”

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