AgForce Sheep & Wool president Brent Finlay said the AWI board had proposed a constitutional change to double the director term from the current three-year period by holding elections every two years instead of annually, in what they claim to be a cost-cutting measure.

"While we support necessary cost cutting we do not support a further loss of transparency in governance of our wool grower research, development and marketing body," Mr Finlay said.

"For a director of any company to potentially sit on a board unchallenged for six years with no shareholder recourse goes against all good governance practice."

Mr Finlay said the proposal flew in the face of the recently released Arche Consulting Report into the performance of AWI, which made particular reference to the current governance of the board.

"The AWI board gave its shareholders an undertaking to address the Arche recommendations, so it is peculiar that they are now suggesting something such as this."

Another issue that the AgForce Sheep & Wool board has discussed at length is the omission of director remuneration from this year’s AWI Annual Report.

"It is beyond belief that a board chartered with providing support and guidance to all of Australia’s wool supply chain partners could exclude such a fundamental component of their financial report – this underpins why AgForce has long been calling for AWI to establish a skills-based board," Mr Finlay said.