News article: How Parramatta Ees members can cause a revolution over salary cap scandal

By DARREN KANEConjuring the spirit of Jackie Chiles – surely the most exquisite yet fiendish legal mind ever to have graced the inside of a courtroom – one can but imagine the chatter that ensued last Tuesday, within the dark mahogany walls of Parramatta Leagues Club's boardroom. Yeah, there's gonna be a problem all right – a problem for the NRL, that is. Scrubbing half our board, and our CEO from the game – it's a clear violation of our constitutional rights. Damn Greenberg, it's a public humiliation – it's outrageous; egregious; preposterous!Why, of course … a smear campaign by stealth, conducted by disaffected warlords, this may be; but a case of ingrained, institutionalised cheating? It's lewd; lascivious; salacious!Wherever the truth lies, concerning the admittedly untested assertions of rampant salary cap cheating at Parramatta – one must approach any quest for truth with a Mariana Trench level of suspicion, when dealing with the Eels – it's incontrovertible that the biggest loser here is the Eels fan; whatever the crystal ball might foretell. The long-suffering fan, loyally paying their membership each year, yet holding no appreciation of what their team winning a premiership actually feels like. Unless, that is, he or she is at least approaching halfway in the game of life.AdvertisementThe most exquisite yet fiendish legal mind ever: Jackie Chiles.The most exquisite yet fiendish legal mind ever: Jackie Chiles.The long-suffering fan who, a dozen times each year traipses out to the soulless concrete stadiums of this fair city, invariably in the cold of the night, still burning that flickering glimmer of hope, that this will be the year. The long-suffering fan who, with whatever particular level of discernment, entrusts the good stewardship of their club; their Eels, to a coterie of directors who have campaigned desperately, for election. Right now, amid the fog of recrimination, half-truths and subterfuge; what is that long-suffering fan to do?In a sense, sporting organisations are inherently paradoxical. The metaphoric cup of a football club will invariably runneth over by any measure of fire and ardour; yet bleeding in the colours of your club is often the last quality that a football club director ought to be possessed of. Passion does plenty to obscure the onerous duties imposed on a director of what is a company, as much as a club; a company, just like BHP and Westpac.Aside from the additional requirements of any particular sport – such as the NRL's rules – the obligations of a company director are severe; especially so when considering that directors of many NRL clubs (not the Eels) accept appointment, where they are paid nada for their hard toil.Under pressure: Parramatta chairman Steve Sharp.Under pressure: Parramatta chairman Steve Sharp.Photo: Shu YeungAt the basic level, a director (and chief executive) of a football club must discharge their duties with a degree of care and diligence that a reasonable person would exercise in that role. Rigid corporate law obligations also apply. These include a duty that each director acts in good faith, in the best interests of the club they serve. Civil and criminal penalties – packing a toothbrush is more serious than any sporting sanction – can be imposed for failure, especially if a director is reckless or intentionally dishonest in not acting in good faith, in the best interests of the club, or for proper purposes.The questions over whether any Eels directors or employees have traversed these serious legal obligations, or otherwise broken the NRL's rules which govern each of them personally (as distinct from the club they serve) will only be resolved with the passage of time. But for the long-suffering fan and the best interests of their club, a more urgent solution may be required. A protracted war between the officials and the governing body would be unedifying at least.The Eels' licence to participate in the NRL is owned by a company, Parramatta National Rugby League Club Limited. It is a company limited by shares. All of those shares are owned by Parramatta Leagues Club Limited. Likewise, the Leagues Club is a public company, but controlled by the tens of thousands of Leagues Club members.Handing down punishments: NRL integrity boss Nick Weeks and CEO Todd Greenberg.Handing down punishments: NRL integrity boss Nick Weeks and CEO Todd Greenberg. Photo: Mark KolbeNow, the vast majority of these members could not give a toss about rugby league, provided they receive subsidised schooners of VB to sup on while slavishly feeding the club's pokies. And there's a torrent of VB flowing out Parramatta way – for the year ending December 31, 2015, Parramatta Leagues Club reported revenue of $82 million; a profit of $6.5 million. An on-the-bones-of-its-arse NRL franchise this ain't.Under Parramatta's corporate structure, one must be a member of the Leagues Club in order to get a seat on its board, and consequently the NRL Club's board. But among a membership of 80,000, how can a collection of frustrated, long-suffering members effect change? Well, glad you asked.The combined effect of the Leagues Club's constitution and the Australian corporations law works so that a mere HUNDRED members, if motivated to take affirmative action, may demand the Leagues Club's directors call an extraordinary general meeting of all members – which must then take place within two months. The quorum for such a meeting is the same 100 members. So, if nobody else could for an hour care to avert their gaze from the hypnotising computerised roulette wheel, it doesn't matter.What's the point of this meeting then, you ask? Well, this is the important bit. Under section 203D of the Corporations Act, the members of a company like the Leagues Club call the shots. They can remove any director from office, simply by passing an ordinary resolution of members. This could mean that as few as 51 votes are needed, if only the minimum number of members required for a quorum, attend the meeting. Played smart, those members calling the meeting could at that same meeting appoint new directors, to replace those forcibly removed.Yes, the sitting directors the focus of such drastic action must be given notice any of such meeting, they must be permitted to circulate written (non-defamatory) statements of defence to the members, and they must also be allowed to address the meeting orally before a vote is taken. However, that is it. The machinations and demands of procedural fairness, which must be afforded by the NRL, do not apply where the members act to reshape the company's destiny.Calling such a meeting invariably causes a director to fall on their sword, out of embarrassment if nothing else. So, the threshold question is whether the collective, long-suffering Parramatta fans, are finally pissed off enough to proceed with extreme prejudice, for their club's sake.Darren Kane is a Sydney sports lawyerhttp://m.smh.com.au/rugby-league/league-news/how-parramatta-eels-members-can-cause-a-revolution-over-salary-cap-scandal-20160505-gonm53.html

"If you are going to do that better off just keeping him in Cup as a break glass option. Unless he is that much of a cancer and that negative to the squad that he needs to go."

Replies

Putty May 7, 2016 at 4:29am

Jackie: Mr Greenberg, the NRL has turned this beautiful specimen into a horrible twisted freak.
Sharp: Who could love me?
Greenberg : I disagree. In fact, I feel Mr. Sharp projects a rugged masculinity.
Jackie: Rugged? The man’s a goblin. He’s only been exposed as CEO for 12 months. By the time this case gets to trial, he’ll be nothing more than a shrunken head.
Greenberg: All right, Mr. Chiles. You’ll have the NRL's offer by tomorrow. Good day, gentlemen. (He exits)
Sharp: Bye-bye. Jackie, you did it. You have screwed the NRL?
Jackie: You better believe it. Jackie’s cashin’ in on your wretched disfigurement.
- Carloeel > Putty May 7, 2016 at 7:17am
  
  Lmfao that is terrific . It's all playing out in my head . Very clever putty ( god what a paradox)
- Putty > Putty May 7, 2016 at 7:34am
  
  As they say if you don't laugh you cry!
- Putty > Putty May 8, 2016 at 11:51am
  
  My case is your face!
Wile E. Coyote May 7, 2016 at 5:11am

Well Phil
What are you waiting for?
Surely you can muster enough members for a spill?
Can you also put a respectable board together to replace the current one?
- Parramatta Tragic > Wile E. Coyote May 7, 2016 at 7:57am
  
  Wile it would be foolish to do ANYTHING before this is played out in the courts and we win. We will win this in the courts right now. There is a democratic election coming up next year which gives anyone who wants to put a team together to stand for election plenty of time to get organised and argue their case. If it comes out in court that we are not over the cap then our board will be justified and Greenberg must resign. Our board will not look too shabby then. Wait to see what pans out. We are going to win this in the courts right now.
Camo73 May 7, 2016 at 7:29am

Is this you Bourbon Man?
Yobz May 7, 2016 at 7:37am

Pretty sure somebody in here was mentioning Jackie Chiles just the day before this article appeared. Coincidence?
Putty May 7, 2016 at 7:44am

Yes it was me! And since the message was written to get us fans to do something - maybe he is a parra fan trying to rally the troups? A call to arms!
The Captain May 7, 2016 at 7:46am

Wasn't it said here just the other day that the required signatures for an EGM are now something like 2,200 and no longer just 100?