Dairygold members have voted to accept proposed restructuring plans, which will see the co-op split into two separate entities.
The vote took place at a Special General Meeting (SGM) of the Co-op's members in the powder store of the Company's Mallow facility at 11:30 this morning.
A company statement said that in excess of the two thirds majority required under the Society's rules, voted in favour of the proposal.
Stockholders will now receive ownership of 75 per cent of shares in the subsidiary company - Reox Holdings while the Co-op will retain the remaining 25 per cent.
Members will receive their shares in Reox Holdings in direct proportion to their existing shareholdings in the Co-op with shares allocated on the basis of three shares in Reox for every four shares currently held in Dairygold.
It is understood separating the businesses will give it greater flexibility to borrow money.
Chief executive Jerry Henchy said the three non-farming businesses vested in Reox Holdings require approximately €400 million to implement their five-year business plans.
"By splitting the business and establishing Reox Holdings as a totally separate company, the Co-op will not be exposed to any risks associated with the borrowings," he said.
"These are very necessary changes for Dairygold given the difficult challenges now facing farming. It is important that all the Co-op's assets are working to their full extend for their owners," he added.
