ECGS backs shareholder resolution at Danisco AGM

The European Corporate Governance Service (ECGS) has recommended that investors vote in favour of a shareholder proposal at food products business Danisco.

The resolution was requisitioned by Frank Aaen (a member of the Danish Parliament, Folketinget, and a representative of Critical Shareholders, Foreningen Kritiske Aktionærer). The proposal, if approved, will enable an employee (current or past) to make a claim against the company if they believe they have suffered an injury or damage due to the company’s use of hazardous substances at Grindstedværket (which Danisco has owned since 1989), and, if that person can prove that the company knew or ought have known that the substances were hazardous, irrespective of the period passed from the time of the injury.

ECGS has been in contact with the company and one of the unions which is involved with claims relating to workers at Grindstedværket currently being considered at the National Board of Industrial Injuries (Arbejdsskadestyrelsen).

In 1972 Grindstedværket was fined DKK 70,000 for discharging mercury into the surrounding environment. Danisco took blood and urine samples from employees in the 1960’s, 70’s and 80’s which indicated high levels of mercury in the blood and in the urine. These results were not, at the time, communicated to the employees.

A 20-year statutory limitation applies to cases submitted to the National Board of Industrial Injuries however the National Board has indicated that the 20-year limitation can be suspended. One of the criteria considered to enable such a suspension is that the 20-year limitation should not commence at the time when the injury took place but from the time the victim becomes aware of the injury.

The board does not support the proposal, however, it is making available the company archives and any information related to production at Grindstedværket to current and former employees.

On the basis that the company did not inform its employees at the time it received the test results in question, ECGS deems it appropriate for the company to take responsibility for its actions on the basis of the ‘polluter-pays’ principle. ECGS therefore recommends shareholders support the proposal.

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