Dear Members,
One of the key objectives since my appointment as Administrator of the Parramatta Leagues Club (PLC) in July 2016 by the NSW Independent Liquor and Gaming Authority (ILGA) is the review and reform of the long-term governance arrangements for both the Parramatta National Rugby League (PNRL) Club and PLC. At the recent Parramatta Leagues Club (PLC) Annual General Meeting on 12 April 2017, I advised members of my intention to commence the governance reform process for the PLC. This follows the successful completion of governance reform in the PNRL, which resulted in the adoption of new modern constitution and the appointment of a highly qualified and skilled board in February of this year. Since the completion of that process, I have commenced a review of the current governance arrangements within the PLC constitution. While both the PLC and PNRL are now in a strong and stable position, it is important to highlight that the current PLC constitution has not been updated to reflect current best practice. It is my view that the inadequacies of the current PLC governance structures has been one of the major factors in the numerous issues that have occurred at the PNRL and PLC over the last five years. I believe that Member’s interests have not been adequately protected as demonstrated by actions of various agencies who have commenced investigations into the practices of the previous Boards and former senior management of both the PLC and PNRL. The mere fact that the PLC is the only major registered Club in NSW to have had major investigations into its Board undertaken by the Office of Liquor and Gaming in the last three years highlights a strong need for reform. I have identified a number of possible improvements to the PLC constitution that would ensure that the Club has a stronger governance platform, which is intended to protect and enhance member’s interest for many years to come. I am now presenting these proposals for consultation and feedback. Key Reforms Attached to this correspondence is a paper that outlines the proposed changes and then compares them to the existing governance arrangements. While there are a number of areas covered in the document, the key changes that I would like to highlight include - - Updating the objects of the PLC to reflect the continued ownership of the Parramatta National Rugby League Club Pty Limited (“PNRL”) and to commit to the ongoing funding support of PNRL.
- Nominees for the PLC Board cannot stand for election without satisfying the criteria specified in the constitution, which includes a skills matrix set out in the schedule at the end of the paper.
- A nominations committee that will be chaired by a person with experience appropriate for the selection for qualified Directors who is not a board member will review director candidates.
- The performance of the Directors will be the subject of an annual review to ensure accountability. Directors to have 3-year terms of office with one third of Directors retiring each year (2, 2, 3). Retiring Directors can stand for re-election to a maximum term of nine years.
- PLC Directors will not receive remuneration for their service on the Board or any committee.
- A Director will be required to comply with the various protocols and obligations (including as to attendance at meetings, contact with the media and maintenance of confidentiality of information) as will be set out in the Director’s handbook.
- Voting by members on formal resolutions to be by way of ballot rather than by voting at general meetings. Postal, electronic and direct voting methods will be permitted on ballots including Elections.
In addition, I am proposing changes to the eligibility requirements for future Directors. This includes- - Nominations Committee recommending nominees before standing for election;
- A nominee must not have commercial dealings with Leagues Club or PNRL beyond certain thresholds that will be set out in the director’s handbook (e.g. provision of services, employment relationships, sale of goods);
- The nomination will be automatically rejected if a negative finding against them has been made by the Independent Liquor and Gaming Authority or the Office of Liquor and Gaming;
- Any person who has been a director of the PLC, PNRL or Parramatta District Rugby League at any time before 19 July 2016 will be ineligible to nominate;
- A Director must have qualifications from the Australian Institute Company Directors (AICD), have equivalent directors experience or agree to satisfy AICD qualification requirements within 12 months from appointment (for 6 out of 7 Directors).
I would like to stress that the exclusion of former Directors of the Clubs’ various entities before July 2016 is not a reflection on the number of ethically sound Directors who have served the Club well throughout its history. It is my intention that the reform process be open and transparent so there will be a two-stage period of member consultation ahead of the proposed changes being placed before the membership for a vote. Stage one - Member Information Meeting 14 June 2017 Parramatta Leagues Club 6:30pm The first period culminates in a member’s information meeting on Wednesday 14th June 2017 at the Parramatta Leagues Club Auditorium at 6:30pm. This meeting will allow members to ask questions and/or provide suggestions regarding the various proposals. Members can also register questions they may want asked at the meeting beforehand by emailing plcreform@parraeels.com.au I will chair the meeting and alongside me will be Greg Golding, an independent governance expert who is a partner at King & Wood Mallesons and who has been advising the club on both the PNRL and the PLC reforms. We will both be available for questions and feedback from members on the night. Stage two - Member Feedback and Consultation period 15 June to 5 July 2017 The second period will allow members the opportunity to meet with me individually and provide written feedback on the proposed reforms up until Wednesday 5 July 2017. There will be three written feedback methods as outlined below Email: plcreform@parraeels.com.au
Fax: (02) 88330781
Mail: PLC Reform
PO Box 2428
North Parramatta 1750. During this period, Members who have initial questions or queries regarding the reform paper can direct them to me through Rachael Chippendale at Parramatta Leagues Club. In addition, Rachael will coordinate requests from members who wish to meet with me during the feedback and consultation period between 15 June to 5 July 2017. Her email address is Rachael.Chippendale@parraeels.com.au and she can be contacted on (02) 8833 0782. As with the PNRL reforms, none of the proposed changes are “cast in stone” and I intend to consider member’s comments and suggestions throughout this process. Next Steps after Feedback and Consultation period Once both stages of the member consultation has been completed and I am satisfied that all relevant feedback has been addressed, the changes will be taken to the members for a formal vote. As with any constitutional change, the changes will be made via a special resolution at an extraordinary general meeting (EGM) which I intend to call in September 2017. This resolution needs a vote of 75 per cent of the members attending so it is important that members review the proposed reforms and provide any feedback to ensure that the resolution placed to members is reflective of what is best for the club and its members. I would like to conclude this correspondence by again thanking members for their support of the both the PLC and PNRL in 2017 and I look forward to hearing from members over the next couple of weeks. For an update on the development and activities at Parramatta Leagues Club by CEO Bevan Paul please click here. For a detailed breakdown of the proposed reforms please click here. Yours Sincerely
Max Donnelly
Administrator, Parramatta Leagues Club Limited
Chairman, Parramatta Eels National Rugby League Pty Ltd | 
Replies
Some very good and needed reforms put forward by Max here, its vital these get through.
It's going to be interesting to see if these get through. These reforms will need 75 per cent approval to get through.
Key points that I'm stoked about:
- Constituted guaranteed funding of the NRL club
- Nominations committee and skills matrix for directors
- Allowing of postal and electronic ballots which means that it is unlikely any person/faction can have a big enough friends and family vote to get up
It will be interesting to see if there is as much interest in this board. Being a director on the PLC board when you won't necessarily get a seat on the NRL board is going to be a lot less appealing, especially when there is no remuneration and you have to go through nominations vetting AND a member vote to get on.
There was an overwhelming response to join the PNRL board though. You'd have to think that some of those who missed out will jump at the chance to get onto the PLC board. This could be not only a launching pad for a spot on the PNRL board, but could also be what they are after career wise. With a lot of businesses moving into Parramatta, any local knowledge gained by these business people will be invaluable.
I like the idea of electronic/postal voting. I was away from Sydney from 1978 - 2000, and while I remained a member of both PLC and the football club I was unable to attend or vote at any of the meetings, was always a bit of a bane for me.
Many clubs these days no longer have any mailed out bulletins or the like, the cost would be huge but it should be available to those who want it in a hard copy along with any voting papers, info on candidates and the like (it certainly was the case with the PDRLFC) and something I would like to see. With the changes taking place the PLC could have a link for members to check their desire for mailed annual reports/voting papers.
While the two boards are somewhat seperate both are a requirement and if the factions get involved to kill off these governance reforms, it will certainly show to all and sundry that they don't have the club, members and supporters at heart, just their own self interest. My hope is that there are more than enough members out there that can vote and see the future and take it forward.
Phil I agree with what Poppa said as well, would be great if you could be involved somehow at least to bring balance along with reporting any problems that may crop up by the factions.
Hi Mutt I don't know if I heard correctly in the past but I am sure it was discussed that if Max had trouble shepherding through these new reforms ( THE PLC not the PNRL) due to old factionalism raising it's head that the Minister was just going to hit the reset button on the constitution and whatever changes needed to be made would be done so by brute force. I think there is still that option.
I wonder if they can do this in parts, ie start with electronic voting. Does it have to be all or nothing?
& it would be a likely outcome. The government has not gone this far and would not be prepared to allow for any chance of the club going back to anything akin to the last 7 years.
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