Professional Documents
Culture Documents
Southport Theatre and Convention Centre, Saturday 11 June - Monday 13 June 2011
Chairmans address
Carl Genese, in his rst conference as Chairman, gave a particular welcome to the 36 rst-time delegates who he and the High Chief Ranger had met before the conference. He was taking over from Glyn Carpenter, who was stepping down after nine years service on the Board - a considerable contribution, he said. Carl also paid tribute to Andrew Pooley, who was stepping down. Andrew had previously served as Deputy Chairman and Senior Independent Director on the Board. It was a great pleasure to see so many branches represented, he said - 86 per cent sent a delegate. Ill be doing all I can to ensure that delegates have the opportunity to speak, knowing that they come with questions from their members. All questions from Conference will be answered this year, even if it is after the Conference has closed.
Funds clarication
Chief Executive Kevin Dann then spoke about the clarication of the Societys Funds structure, in response to the FSA. Foresters, like all with prots mutuals, had received a Dear CEO letter from the FSA. Its general position had been that with prots policyholders were ultimately entitled to all, or almost all, of the assets in a mutuals long-term funds. This had serious implications, said Kevin: if Foresters only had a single with prots fund and it was ultimately wound-up, the last with prots policyholder would get all of what was left. Kevin said the Boards response has involved looking at the history of our Society, our incorporation process, the origin of our funds, and the contractual rights of our policyholders, as well as taking legal advice. Our conclusion was that it wasnt our priority to challenge the FSAs position, but to consider the implications for Foresters. Weve got a complex fund structure, and its difcult to apply with prots denitions to them. Pooled assets are difcult to identify as with prots or not. So weve gone through our funds to clarify whether they are insurance or noninsurance funds, non-prot or with prot. Theyre all dened in our Principals and Practices of Financial Management, available on our website. Weve also proposed to clarify the situation with pooled assets, making sure that each individual fund has a distinct, discrete pool of assets within it. We sent our proposals to the FSA in July 2010, pointing out that this was part of our modernisation process, aiming to bring clarity and dene the extent of our with prots funds, but without changing our policyholder or member rights, and keeping branch funds ring-fenced. Implementation is timetabled for summer 2011, and the FSA accepted our proposals on 14 April. Its ended up being a fantastic result for the Society, said Kevin. We get clarity around our funds and who they belong to, the rights of our policyholders and members are protected, and were able to plan to go forward.
Charity presentations
Michael Grealy announced that the total raised for the RNLI was 64,386. Receiving the cheque, RNLIs Senior Corporate Partnerships Manager Patrick Crow said that every one of the 139,000 lives saved by the RNLI was saved with the help of the charitys supporters, and that Foresters was among the most loyal of them, having been raising money for lifeboats since the 1860s. The Societys donation would fund the training of 52 volunteer crew members. It was a superb total, Patrick said, and Foresters had gone about raising it in a truly friendly way. Richard Darlington then explained his choice of charity to support during his time as High Chief Ranger. He said he couldnt imagine what it would be like not being able to see Englands green and pleasant land. He and his wife Doreen had been supporting the Guide Dogs for the Blind Association (Guide Dogs for short) for over 20 years. With no Government support, the charity aims to increase the number of guide dog owners in the UK to 6,000 by 2020, from 4,500 now. Delegates then heard from Andrew Cork, who felt that other charities hadnt been prepared to consider him for help after hed been left with multiple disabilities, including blindness. Guide Dogs, though, had given him a chance: Its opened my eyes to a whole new future,
Membership
Carl Genese then spoke about the continued pressure on the Societys governance arrangements, and how it needs to adapt its governance framework to meet that pressure, while retaining member involvement, as a mutual. Two key considerations over the year for the Board would be to review its size and look at ways of engaging members. The Board had begun to address the size issue in 2009, led by then Chairman Glyn Carpenter, looking at the needs of a business of the size and shape of Foresters, and given the FSAs approach to and expectations of Non-Executive Directors. While keeping the majority of Non-Executive Directors, the Boards proposal is to reduce the number of Board members to between seven and nine, said Carl. With Glyn and Andrew Pooley reaching the end of their service as directors, by not seeking to replace them wed be moving towards this target, from the current 12 directors. This reduction is likely to continue, taking into account the prevailing skills on the Board. A skills matrix is now in place to help with this. Then we have to nd ways to encourage members to participate at Board level, despite the increasingly high bar set by the FSA, said Carl. So the Board is also proposing to create a new Membership Committee, to work with and advise it on membership matters. The Membership Committee will be chaired by the High Chief Ranger and have up to eight members, with up to four representatives from delegates and interested members. It will help to maintain levels of member engagement, beyond High Court, and help member views be represented to the Board, especially on membership funds, benevolence and other benets. It will also help to develop prospective Non-Executive Directors, said Carl, strengthening the Societys governance framework, while meeting its responsibility to treat members fairly. Were looking to set it up as soon as possible, inviting applications from interested members, with a deadline of 22nd July. The nominations committee will interview candidates and aim to appoint by 1st September 2011. Members will serve initially until 2012; then, at the 2012 High Court, member elections will take place for a further term of two to three years. Carl encouraged delegates to write to him if they wished to know more, after discussing the matter with their branches.
Subject to Rule 8.13 below, each branch shall be entitled to send three Delegates to general meetings of the Society, branches with over 500 members shall be entitled to send four Delegates, and a further one delegate for every additional 500 members up to a maximum of fteen delegates in total. That the incoming Board be authorised to make a call upon each branch for payment of a levy of 5p per 100 of the total funds shown on the last annual return received at Head Ofce for the Convalescent Home Fund. Such levy to be remitted to Head Ofce or deducted from the Courts Investment Fund Account by no later than 1st April 2012. That in 2011 the Board be authorised to pay 2,750 to the Yorkshire Foresters Convalescent Home. That in 2011 the Board be authorised to pay 2,750 to the Foresters Homes, Bexley Heath. That in 2011 the Board be authorised to pay 2,750 to the Portsmouth and District Friendly Societies Home, Portsmouth. That the remuneration of the High Chief Ranger, if not also a Non-Executive Director, be set at 5,500 per annum. That the remuneration of the High Chief Ranger, if also a Non-Executive Director, be set at 3,500 per annum.
As a result of this, an emergency proposition was agreed, that arrangements under miscellaneous propositions 14, 18, 19 and 20 from High Court 2010 should continue until High Court 2012.
Foresters Friendly Society is the trading name of the Ancient Order of Foresters Friendly Society Limited. Authorised and regulated by the Financial Services Authority. Incorporated Friendly Society No. 511F. FSA Registration No. 110029. Foresters Friendly Society is an incorporated branch society registered in the United Kingdom.