The board of Dairygold, the north Cork-based co-operative society which has shed 500 jobs in recent months and is undergoing major restructuring, received the support of shareholders yesterday and adopted a new rulebook for the society.

A proposal to have a vote of no confidence in the board was rejected by the 2,575 shareholders who attended the special annual meeting in Mallow. All but eight voted instead for a motion of confidence in the board.

Among the important changes made to the rules governing the society at the meeting was one to issue one bonus share for every two currently held in the society.

However, the most important change involved strengthening the decision-making powers in the society into the hands of the active members - the shareholder milk suppliers.

The general committee of the society will be reduced from 209 to 60 members and electoral areas will be redrawn in 2006 to reflect the location of these active milk producers.

The new rules will limit the age of those seeking election to the committee and board to 60 and will reduce the amount of times any member can serve on the committee or the board.