Commission Delegated Regulation (EU) 2017/891 of 13 March 2017 supplementing Regulation (EU) No 1308/2013 of the European Parliament and of the Council with regard to the fruit and vegetables and processed fruit and vegetables sectors and supplementing Regulation (EU) No 1306/2013 of the European Parliament and of the Council with regard to penalties to be applied in those sectors and amending Commission Implementing Regulation (EU) No 543/2011 (c. 891)

[F1 Annex 8 U.K. Restrictions on shareholding and voting rights in producer organisations and associations of producer organisations

Textual Amendments

F1 Annex 8 inserted (31.12.2020) by The Common Organisation of the Markets in Agricultural Products (Producer Organisations and Wine) (Amendment etc.) (EU Exit) Regulations 2020 (S.I. 2020/1446), regs. 1(3), 5(31)

1.

In this Annex:

(a)

‘voting right’ means a right to vote in relation to a relevant decision;

(b)

‘relevant decision’ means any decision affecting the producer organisation or association of producer organisations (as the case may be) and its members (in their capacity as such), including the election of the producer organisation's or association of producer organisations' (as the case may be) directors or board members.

2.

A producer organisation must provide in its members' agreements and statutes for each producer member to have one voting right.

3.

By way of derogation from point 1, a producer organisation that has more than ten members may, with the agreement of the Secretary of State, provide for individual producer members to exercise up to 10% each of the voting rights. The remaining voting rights (other than voting rights held by non-producer members, insofar as permitted by the Secretary of State and the producer organisation) must be shared between the remaining producer members. A producer organisation that implements this option must adopt measures to prevent abuses of power by its members.

4.

A producer organisation may provide in its members' agreements and statutes for non-producer members to have voting rights, provided that:

(a)

a non-producer member must not be permitted to hold more than one voting right;

(b)

[F2 the total share of the voting rights exercisable by non-producer members must be no more than 20%.]

5.

A natural or legal person must not hold more than:

(a)

20% of the total number of shares or amount of capital in a producer organisation directly; or

(b)

49% of the total number of shares or amount of capital in a producer organisation in total, directly or indirectly.

6.

For the purpose of point 5, a person holds a share or capital “indirectly” if the person has a majority stake in another person and that other person:

(a)

holds the share or capital in question; or

(b)

is part of a chain of persons:

(i)

each of whom (other than the last) has a majority stake in the person immediately below it in the chain; and

(ii)

the last of whom holds the share or capital.

7.

An association of producer organisations must provide in its members' agreements and statutes for each member that is a producer organisation to have one voting right.

8.

An association of producer organisations may provide in its members' agreements and statutes for producer members that are not producer organisations to have voting rights, provided that:

(a)

such members must not be permitted to hold more than one voting right each;

(b)

the total share of the voting rights exercisable by such members must be less than a majority of the total number of voting rights exercisable in respect of each relevant decision.]

Textual Amendments

F2 Annex 8 point 4(b) substituted (25.6.2021) by The Common Organisation of the Markets in Agricultural Products (Fruit and Vegetable Producer Organisations, Tariff Quotas and Wine) (Amendment etc.) Regulations 2021 (S.I. 2021/756), regs. 1(2), 4(52), 7(a)