Just over a year ago, the Canadian International Grains Institute (Cigi) and Cereals Canada started to think about the possibility of a merger, and last week they finally made the formal decision.
In a release sent out by the two organizations, Cigi and Cereals Canada says the move capitalizes on “the benefits and synergies that would arise from amalgamating,” and that both boards have met and agreed to sign a letter of intent to pursue joining.
Upper management will now be looking further into the development of a comprehensive single governance structure that will be presented to both boards for approval. It will allow the boards to bring forward recommendations to the respective member organizations.
According to the release, any amalgamation proposal will be subject to approval by votes of the member organizations of both Cigi and Cereals Canada. If all goes well, the merger should be complete by March 31, 2020.
Key principals outlined by the groups include:
- National in scope – Members are Canadian entities with investment in the Canadian grain business (development, handling, exporting, processing).
- Pillars of the Canadian value chain are represented (growers, life science/ seed, handlers/exporters, processors).
- Representation on the Board is based on membership dues (pillars/members that pay more will have greater representation on the board).
- Direct participation on the board is not the same as participation in the activities of the organization. The board is responsible for the strategic direction and annual approval of the activities and budget of the organization. All members, whether or not they are directly represented on the Board, have the opportunity to participate in the priority setting and feedback on activities of the organization at the Annual General Meeting and on standing and ad hoc committees, as examples.
- The organization will strive for consensus decision making at both the Board and Member level. Clear consultative processes will be established to help reach consensus. A clear process to allow for Member dissent will be established for (rare) cases where consensus is not possible.