The Hindu Business Line : AWB Ltd, AWB Intl to become two separate cos

Australia's wheat behemoth AWB Ltd is scheduled to be restructured effective October 1. AWB Ltd and AWB International are set to become two separate entities. This follows a Board decision announced in July end aimed at strengthening corporate governance and accountability across the organisation.

In recent months, the corporate had attracted adverse public attention and media reports for its alleged involvement in sharp business practices.

In line with recommendations

Although full details of the changes are not available as yet, it is believed that they are in line with recommendations from grower groups and built on recommendations of a recent review of Australia's Wheat Marketing Act. According to available information, under the plan, AWB International will have an independent board and a governance committee structure separate from AWB Ltd.

AWB International will retain the licence for the single desk for wheat exports.

Manage single desk

It will manage the single desk including control of export licenses, the bulk veto and permit applications as well as managing the bundled service contract between AWB Ltd and AWB International.

For it parts, AWB Ltd will concentrate on management of wheat pool, and perform contracted services under the bundled service contract.

AWB has emerged as a large supplier of wheat to India.

More Stories on : Wheat | Restructuring

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page