Resolution 17: Hugh & Tesco PLC
On Friday June 27th we finally made it to the Tesco AGM at the National Motorcycle Museum in Birmingham. It was only two months ago that I bought a single share in Tesco; but the time since has seen us negotiating a long and arduous road strewn with obstacles:
• To get the requisite number of shareholders to back my resolution I had to get the support of at least 100 shareholders with a minimum of 200,000 shares between them
• To be able to encourage the general public to support the resolution, I had to engage the services of a stockbroker to avoid accusations of improper conduct under FSA regulations
• Once submitted with the requisite support, Tesco levied a charge of £86,888 to pay for distribution of our resolution to all Tesco shareholders
• After this sum was paid, following a hasty online fundraising auction, we were informed that Tesco were only prepared to table it as a Special Resolution (requiring 75% of shareholder support)
Nonetheless, on Friday June 27th I finally made it to the Tesco AGM in Birmingham. Upon registering, I was informed that I would be voting on behalf of 257 shareholders with 585,307 shares. I’d like to thank all those shareholders who nominated me as their proxy, to vote on their behalf. I would also like to thank Tesco Chairman David Reid who made time available for me to speak in favour of Special Resolution 17. Additional support was expressed by members of Compassion in World Farming and the financial community.
The result was that almost one fifth of Tesco shareholders voted against Tesco. The combination of shareholders who voted for and those who abstained (shareholders who still defied the company’s strict instructions to oppose Resolution 17) was 19% - representing almost 1 billion shares.
Frankly, it’s a figure they cannot ignore. Effectively, I now have a mandate from one fifth of Tesco shareholders to continue negotiating improved minimum welfare standards for Tesco poultry. At the AGM, the Chairman himself said that Tesco would be happy to participate in an industry-wide forum to consider new welfare standards for poultry. We feel that, as the UK’s biggest sellers of poultry, Tesco should take the lead in establishing such a forum. And we will continue our dialogue with the company to help bring that about.
Meanwhile, behind the scenes, Tesco has already begun a process of improvement. Their Willow Farm bird is being upgraded to RSPCA Freedom Foods standards. All new poultry sheds being built to supply Tesco will include natural light windows, and have the potential to be upgraded to Freedom Foods standards. Tesco have promised to introduce some form of environmental enrichment to all their standard chicken houses. We would like the company to go a great deal further – and ultimately realise our goal of making Freedom Foods the new minimum standard for poultry. But we recognise that Tesco have made a meaningful start along this road.
It has been a long slog to get to this point but it has definitely been worth it. Britain’s consumers continue to support our campaign and sales of higher welfare poultry continue to rise despite the gloomy economic climate. That is great news and long may it continue.
Thanks so much to all of you for your vigorous and continued support.