AWB says the new constitution also reinforces the company's commitment to grain trading if the reforms are approved by shareholders on August 21.

The move follows a backlash in some quarters against the AWB push to dismantle the current dual-class shareholding structure.

Some grower groups have argued that the A-class grower shareholding engenders loyalty to AWB among farmers.

AWB chairman Brendan Stewart said the proposed new constitution is a standard ASX constitution, but it contains three important provisions which will provide comfort and assurance to Australian wheat growers.

The provisions in the proposed new Constitution are:

* a 10pc shareholding limit for three years;

* at least two grower directors (i.e. directly or indirectly engaged in agricultural production on a commercial scale); and

* one of the company's objectives is to continue to be involved in grain trading.

"These three provisions have been included to ensure Australian wheat growers are comfortable that AWB will continue in the grain marketing business," Mr Stewart said.

"The proposed constitution backs up AWB's commitment to remain in grain trading following our announcement earlier this month to run two wheat pools – one in the west and one on the east coast.

"By approving Constitutional reform and putting in place the proposed new Constitution AWB will be able to compete effectively with the bulk handling companies and the international traders."

The AWB board will submit the draft new constitution to shareholders for adoption if the proposal to remove Article 2 (doing away with the dual class share structure) is approved by shareholders at the meetings to be held on August 21.

The draft is subject to approval by ASX Limited and final approval by the board of AWB Limited.

Meanwhile, the Australian Shareholders Association has indicated that where it is appointed as a proxy it will vote in favour of the AWB resolutions on constitutional reform.

The ASA voting intentions can be accessed via their website – http://www.asa.asn.au/

* AWB's proposed new constitution is available on AWB's website - http://www.awb.com.au/investors/f uturevote08/proposednewconstituti on/