Column Herman de Jong: 'The company takes Finance Committee opinions very seriously'
October 30, 2023
Within the Members' Council of Royal FloraHolland, there are several committees. Members in such a committee prepare discussion of topics in the Council of Members and therefore study sub-topics. An example is the Finance committee, which consists of seven Members' Council members. One of them is Herman de Jong. In his column, he explains the tasks and responsibilities of the Finance Committee and how it is involved in the Members' Council process.
As the Finance Committee, we are direct mouthpieces for the company on money matters. We give solicited and unsolicited advice on financial issues on behalf of the Council of Members. Requested advice concerns, among other things, membership fees. This makes sense, as the Council of Members ultimately has to decide on the membership fees stipulated in the Articles of Association.
Support
We also provide the company with our ideas and objections on other matters, such as the buyer and supply tariffs. And that is quite special, because these rates do not require a mandate from the members. But it is important for the company that there is broad support for these rates as well. And that Members' Council members - through the Finance Committee - have their say here too.
The seven of us have already done the groundwork for everything that comes up in the full Council of Members. In a clear memo, we take the other Members' Council members through what we recommend. We also explain what pros and cons we see. And whether we have any reservations. This way, every member of the Council of Members can make a proper assessment. And they should, because every member is ultimately responsible for the vote he or she casts, in the interest of the entire cooperative. This is why we do our best to involve the Members' Council members in the content as much as possible.
Serious discussions
So how does this work in practice? Let's take membership fees as an example. Every year, Royal FloraHolland makes a budget for the coming year. This lists the expected costs and the income that goes with them. The balance has to be sound. Based on that healthy balance sheet, the company makes a proposal for the rates. We, as the Finance Committee, discuss this with finance director David van Mechelen and the Finance Department. Or in discussion, you can safely call it. We do that about four times. Or more often, if necessary. The company asks us for input and feedback on the proposal. Whether they are on the right track. Our feedback is then incorporated or an explanation follows as to why they decided differently after all. We make sure that the interests of our constituency - the members of the cooperative - are taken into account as much as possible. The company takes our advice very seriously. Because here, too, trust and support from the members are absolutely indispensable.
This year, everything is different from usual. Very deliberately, we pulled the regular rates and the member packs separately. For the first time, the 90% version of the rates were already communicated to members at the end of September. I am proud of that: after all, we as a committee pulled hard on this, for our members. Because if you know at an early stage what costs you can expect, you are better able to adjust your business strategy for the coming year accordingly.
Talk and think along
November's member sessions will cover the 2024 tariffs, asking what concerns around the tariffs process members would like to share. We will then take these into the creation of the 2025 tariffs. As a Member Council member, I look forward to discussing this further with members. So to everyone reading this: I would like to warmly invite and recommend you to attend one of the sessions. Because input from our members, from you, is indispensable for me as a member of the Finance Committee to do my job well. Will I see you then?
As the Finance Committee, we are direct mouthpieces for the company on money matters. We give solicited and unsolicited advice on financial issues on behalf of the Council of Members. Requested advice concerns, among other things, membership fees. This makes sense, as the Council of Members ultimately has to decide on the membership fees stipulated in the Articles of Association.
Support
We also provide the company with our ideas and objections on other matters, such as the buyer and supply tariffs. And that is quite special, because these rates do not require a mandate from the members. But it is important for the company that there is broad support for these rates as well. And that Members' Council members - through the Finance Committee - have their say here too.
The seven of us have already done the groundwork for everything that comes up in the full Council of Members. In a clear memo, we take the other Members' Council members through what we recommend. We also explain what pros and cons we see. And whether we have any reservations. This way, every member of the Council of Members can make a proper assessment. And they should, because every member is ultimately responsible for the vote he or she casts, in the interest of the entire cooperative. This is why we do our best to involve the Members' Council members in the content as much as possible.
Serious discussions
So how does this work in practice? Let's take membership fees as an example. Every year, Royal FloraHolland makes a budget for the coming year. This lists the expected costs and the income that goes with them. The balance has to be sound. Based on that healthy balance sheet, the company makes a proposal for the rates. We, as the Finance Committee, discuss this with finance director David van Mechelen and the Finance Department. Or in discussion, you can safely call it. We do that about four times. Or more often, if necessary. The company asks us for input and feedback on the proposal. Whether they are on the right track. Our feedback is then incorporated or an explanation follows as to why they decided differently after all. We make sure that the interests of our constituency - the members of the cooperative - are taken into account as much as possible. The company takes our advice very seriously. Because here, too, trust and support from the members are absolutely indispensable.
This year, everything is different from usual. Very deliberately, we pulled the regular rates and the member packs separately. For the first time, the 90% version of the rates were already communicated to members at the end of September. I am proud of that: after all, we as a committee pulled hard on this, for our members. Because if you know at an early stage what costs you can expect, you are better able to adjust your business strategy for the coming year accordingly.
Talk and think along
November's member sessions will cover the 2024 tariffs, asking what concerns around the tariffs process members would like to share. We will then take these into the creation of the 2025 tariffs. As a Member Council member, I look forward to discussing this further with members. So to everyone reading this: I would like to warmly invite and recommend you to attend one of the sessions. Because input from our members, from you, is indispensable for me as a member of the Finance Committee to do my job well. Will I see you then?
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