The Co-operative Group has "acknowledged its governance is not up to scratch", Lord Myners said following members unanimously voting for reforms.
Lord Myners said: "I'm thrilled with the outcome today...there has been a fundamental change in position".
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Conservative Ben Bradley admitted his claims were 'wholly untrue and false', and pledged a 'significant' donation to charity.
Turning bitterly cold into next week with freezing temperatures by day and night
It comes as 22 charities signed an open letter vowing to improve safeguarding, and apologising for 'failures' in the sector.