THE board of Australian Wool Innovation has closed ranks to support its chairman Wal Merriman.

Support for the chairman also coincided with the appointment of acting chief executive Stuart McCullough to the role permanently.

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In a statement released this week announcing the appointment, Mr Merriman said both he and Mr McCullough had the full support of the board.

Mr Merriman denied there was an attempt at last week's meeting to propose a vote of no-confidence in his chairmanship.

At the meeting the board approved a 2010-11 operating plan, a three-year strategic plan and the statutory funding agreement.

It also considered a report prepared by Prof Bob Baxt highlighting governance concerns within the board.

Mr Merriman said the report was confidential and he would not discuss its contents.

Mr McCullough said the operating and strategic plans and the statutory funding agreement would be presented to Agriculture Minister Tony Burke.

Mr Burke must approve the funding agreement, which establishes protocols as to how AWI will spend the 2 per cent statutory levy plus the Government research contribution.

But Mr McCullough confirmed both the Minister and the Agricultural Department had proposed a raft of changes to the agreement.

Mr McCullough said AWI had agreed to some of the proposed changes and rejected others.

While Mr McCullough and Mr Merriman wouldn't comment on the proposed changes, reports suggest the changes related to reporting procedures and the election of board members.

Last year's Arche Report, which conducted a triennial review of AWI activities, recommended AWI move to a skills-based board.

Mr McCullough was willing to provide details on the 2010-11 operating plan. He confirmed:

A levy income budget of $30 million, up $3 million on this year.

There would be a consumer marketing campaign, but each advertising program would be supported by a retailer or brand.

There would be investments in genetic research projects despite genetics scoring a low priority in AWI's funding priorities.

Industry-based production forecasting to be replaced by a single provider.