Co-op members have voted in favour of proposals to reform the way the struggling mutual business is run.

At the Co-operative Group’s special general meeting a resolution proposing key reforms, based on recommendations by former City minister Lord Myners, gained unanimous support.

Ursula Lidbetter, Co-operative Group chairman, said: “This is a highly significant moment for the group. There is a huge task ahead of us if we are to deliver the reforms necessary to restore the group’s reputation and return it to health, but the board will work hand-in-hand with our members to ensure that we seize this opportunity.”

The resolution proposed the creation of an elected board of directors, comprising people with relevant experience to run an organisation like the Co-op; the establishment of a structure giving Co-op members powers to hold the board to account; moving to a “one member, one vote” system, in which members can directly vote on policies and the introduction of rules to protect against de-mutualisation.

Business secretary Vince Cable said the vote for reform was “a step in the right direction”.