The same week long-term without explanation,the “Kooyong for Members” group,headed by notable Melbourne business figures,launched a website and delivered a letter with over 100 member signatories demanding the board hold a meeting to address their ongoing concerns with the club.
The landing page for the newly-launched Kooyong for Members website.Supplied
Leading the Kooyong for Members group is a collective six members,including notable Melbourne business figures:Corporate finance guru Fiona Hansen,investment banker Enrique Klix,who is CEO of the Integral Acquisitions Corporation 1,former media executive Jed Bertalli,Michael Richards,Rob Dennis and Mike Mitchell.
Efforts were made by this masthead to contact various members of the group. Some declined to comment,others could not be reached.
The group – pushing for “positives change across all key areas of Kooyong” – formed in response to the club’s handling of the,which forced the venue to call in external auditors in October.
Chris Brown abruptly departed as CEO after two decades in the position.Supplied
Auditors from accounting giant Grant Thornton,which found that poor financial management and reporting were to blame for the multimillion-dollar loss.
The group is also pushing for a review into all of Kooyong LTC’s outsourced agreements and contracts,action to raise the standards of facilities,and develop a “renewed and clear purpose” for the club.
The group delivered a letter with 110 signatories to interim president Darren O’Loughlin last week,the day after staff and members learned that chief executive Brown had departed the club without explanation.
Brown had held the top position for more than two decades.
His departure was one of a few leadership changes over past weeks:Club president Adam Cossar resigned from his position two weeks earlier. His interim replacement,James Macmillan,also resigned just days after filling the position. Macmillan remains as a board member.
An email sent to signatories of the letter on Sunday,and obtained by this masthead,informed recipients that O’Loughlin had agreed to meet with the group in the next two weeks to discuss their concerns.
O’Loughlin did not respond to calls or text messages sent by this masthead.
“We have received agreeance from the interim President to meet and we are hopeful to hold a meeting during the week commencing on 26th February - if not,4th March,” the letter sent to signatories read.
The email also outlined the three areas of concern addressed in the letter they are seeking a response to. Chief among those accusations was:“The Board’s failing in its fiduciary responsibility to provide Members with a sufficient explanation of the circumstances resulting in the much-publicised significant loss of Member funds.”
Also listed as issues the group is seeking to resolve was the claim that the board failed to disclose the details of the recommendations that came from the Grant Thornton review,as well as criticism to how it handled afiled by one of the group’s members,Rob Dennis.
The email also pointed to the group’s newly launched website,and encouraged the letter signatories to share it with other members to “capture suggestions”. Data shows the website’s URL was registered on Friday.
“We are a diverse group of Kooyong Members who want to make improvements around how our club is run,” the landing page of the site reads.
“You are joining a community dedicated to transparency,accountability,strong governance,and a world-class member experience.”
The website copy says the group is planning to host member events,send letters and petitions to club leadership,call a special general meeting to “demand accountability” from the board,and advocate for members on key issues.
Rules set out by Consumer Affairs Victoria stipulate that a special general meeting can only be held for a specific purpose.
“Special general meetings often deal with business that can’t wait until the AGM. A range of matters may be considered,including those that must be decided by a special resolution,” the regulator’s website states.
Board releases new detail on Grant Thornton review
The letter delivered to Macmillian on February 20th was followed by an update to members later that week,assuring that changes have been made to its accounting process,and that the dining and functions operations had returned to “normal levels of profitability”.
In the update,the board disclosed more detailed information from the findings from the audit,but said it cannot provide the report in full,blaming commercial confidence.
They added that a meeting would be held on March 25th to discuss the Grant Thornton findings with members face-to-face. This is in addition to the meeting promised to the Kooyong for Members group.
The board’s message to members with more detailed findings from the Grant Thornton report
It listed five key findings from the review,including that there was “inappropriate” accounting practices in operation,incorrect procedures with “lack of controls” and that the board was receiving inaccurate financial information in the lead up to the discovery of the multimillion dollar loss.
The update added:“When the Board became aware of the financial loss,the management accounting and procedural issues in September 2023,remediation actions were quicky[sic] implemented. The board would like to sincerely thank the Kooyong staff for their commitment and dedication to ensuring that the remediation actions were implemented.”
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