MOSL to hold vote on membership arrangement changes

MOSL is to table five separate special resolutions at its AGM on 22 July for wholesalers and retailers to vote on regarding updating its membership arrangements in keeping with market development.

The market operator consulted on options between 13 June and 1 July, but received a low level of response (16), including none from New Appointment and Variations (NAVs) or self-supply retailers. MOSL said those who responded were a rough 50:50 split of wholesalers and retailers, and most were supportive of the proposals.

The consultation proposals were:

• Membership: merge the ‘Associated Retailers’ and ‘Unassociated Retailers’ into one ‘Retailer’ category, in line with the arrangements for the Strategic Panel and its committees. MOSL reasoned that associated retailer numbers are now small, have disproportionate representation, and shared interests with unassociated retailers. 

• Industry directors: The current three industry directors appointed to the MOSL board would be increased to four – two wholesalers and two retailers. This would bring better balance. Whereas the three directors are currently elected by those in their block, this would change so the blocks continue to nominate candidates, but the final selection will be made by MOSL’s Nominations Committee. MOSL said this would bring the MOSL board in line with the Strategic Panel, Code Change Committee and other industry groups. 

• Quorum: Reduce the number of votes required to meet quorum to 50% of all members (across both new categories), with an additional protection in place to ensure that a vote is only passed where 50% or more of the votes by both the wholesaler and retailer categories are in favour. With the current two-thirds per block quorum requirement, it can be a struggle to secure participation. 

• Triennial review of membership: this is a new proposal for a formal requirement in the Articles of Association for MOSL to review its membership structure every three years, “to remain aligned to the evolving market”.

Takeaways from the consultations responses will inform the resolutions.