The MFAA will ask its members to vote on proposed amendments to the constitution at the upcoming Annual General Meeting.
Under the proposed amendments, each consolidated mortgage broking group will not be able to have any more than two representatives on the MFAA board.
MFAA chief executive officer Phil Naylor told Mortgage Business that the changes were originally proposed some months ago to ensure an even playing field across the board.
“In recent months, there has been a substantial amount of consolidation in the industry. With that in mind, there was the concern that large consolidated groups could elect one member from each aggregator to the board and effectively have the majority,” Mr Naylor said.
“These proposed changes were developed in the interest of fairness. We want to make sure we provide a balance between being overly dominated by one group or groups and still allowing those groups their democratic election privileges.”
Mr Naylor said he felt as though two board seats was not an unreasonable as the board currently consists of 12 representatives.
“Two seats will not be able to provide any one group with a dominant position,” he said.
“The industry is constantly evolving and we need to make sure our constitution remains aligned with those changes. We have changed it in the past, and I believe it is not asking too much to do it again now.”
A 75 per cent majority is required to approve the resolution.
Members will be asked to vote on the matter before Tuesday 24 November.
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