Merry Christmas to Peter Wilson. When it was suggested that Peter Wilson should be independent of the old board so that we can have a fresh start Peter responded with "That's your issue". Summary of the meeting here: viewtopic.php?f=23&t=594
A good summary of where we are up to by Joe Aston of the AFR, linked to from here: viewtopic.php?f=5&p=4137#p4137
If you are new to this website read the story so far: viewtopic.php?t=321#p1793
Check out some of the AFR articles, too many to list and check out some of the ABC reports: http://www.afr.com/business/accounting/ ... 215-h055ej http://www.afr.com/business/accounting/ ... 211-h02x1d http://www.abc.net.au/news/programs/the ... s,/8626662
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Board Of Directors sins

Let's look in detail at our directors individually so the term 'the board' does not minimise their individual responsibility for decisions made and oversight in relation to many of these issues.
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incitem3
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Joined: Sun May 21, 2017 3:39 pm

Board Of Directors sins

Post by incitem3 » Sat Jul 01, 2017 10:46 pm

I looked at the just released remuneration statements that CPAA sent out by email detailing the amounts paid to each director. Just looking at this the amounts seem extremely high for a non profit members organization but I must admit I don't really know what they do, What they did, How often they meet, How much time do they spend at this, what major decisions have they made in the last few years, How did the remuneration levels get where they are.
I listened to Mr Malley on His June 30 radio interview and he really believes that he has done nothing wrong and did a good job for the last seven years based on what the expectations of the board were. He does not seem to understand that CPAA members feel cheated by the senior people acting in a form of secrecy and having huge unjustified levels of remuneration and no direct vote for directors. Is Mr Malley and all of the directors and senior staff so full of self interest and sociopathic thinking that they ran the organization for their own benefit and not the members? The secrecy around the Board activities would support the conclusion that they knew their selection processes and remuneration levels would not be popular with the membership. We all seem to be saying how did such a rotten bunch of people get to be directors and leaders of the CPAA.

I wonder what are the members expectations of the Board of Directors and how much should they be paid to be fair and get good people? I would like to learn from other members what it is they expect. I will throw out a few ideas of my own. I am not aware of any part of our constitution that gives specific direction as to what and how the CPAA board is to do things other than regulate the accounting profession.
I expect the directors and the board to run the organization so it is solvent, democratic, and provides exemplary governance that supports CPA students, Members in practice, and members in industry and academia so the public and other stakeholders are well served. They should treat the fees and tuitions that we pay as a sacred trust and decisions should be made that are respectful of the profession and its members.

In the last three years that I have been a CPA, I have never seen a portfolio report from a director. What about directors meeting minutes being available to members. What about holding members meeting for special resolutions on key matters and elections for directors as the corporations act suggests. How much do we want the directors and executives to be paid? What should it be based on? I think that using % of the governor general's pay as a basis was a novel idea but might even be a bit too over generous as this is a very different kind of job. The GG is funded from the federal government as an honorary representative of the queen who must use part of the $600,000 per year they get for entertaining foreign dignitaries and travel. This is not very simular to running the CPAA. How about using the average pay of CPAs as a basis from surveys of members?

It appears that Mr. Malley did not understand that he was running a members organization whose main source of revenue is from fees from the members. At Mr Malleys 's $1.8 million / year this works out to about $8,000/day for a full time job, and is this a full time job? Some people have commented here that Alex Malley did work for other organizations while being our leader. Is this true, if so he was double dipping and what were the guidelines if any on what he could and couldn't do?

I don't think that the directors getting Mr Malley and others to try and recruit new members is a bad thing as the main objective but it appears to have become the main goal here with no boundaries and little support from members. Most of us feel that funding tennis Australia, basket ball and advertising in the UK and the US for a book Mr Malley was promoting is not a good use of our fees but what were the rules the board was to follow? It is one way of promoting the CPA to the youth. What are our expectations here?

Mr Malley says he welcomes a review and he may be right that little may be found that they did wrong as there appear to be few guidelines that the board and the leadership had to follow. This may be the fault of a membership that did not ask the right questions and challenge decisions sooner than now. The corporations act respects the right of directors to make business decisions and the members to select directors. If there is a directors spill how do we change the rules and the constitution to ensure that the Board does not do this all over again?

Steve Hamilton
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Joined: Mon Jun 19, 2017 11:49 am

Re: Board Of Directors sins

Post by Steve Hamilton » Sun Jul 02, 2017 12:46 am

Directors wages were set as a percentage of the auditor generals wages not GG.

As a member of 28 years and a CPA of 20 years plus in public practice I expected the directors and the CEO to act in the best interests of the membership, both presesnt and future. In my humble opinion this has not been the case.

When given the opportunity to vote for DC I have made the effort to do so. Wasn't aware of the current issues until recently. Was increasingly uncomfortable with the Malley cult of personality and media career financed by my fees. I am very grateful for the efforts of Brett and friends in pushing for change.

I would love to be able to sit on the board of CPA Australia and make sure this didn't happen again. My BS detector is well refined. However I'm sure I wouldn't make the cut. Too independent and I haven't sucked up to the right people or networked, been too busy creating real wealth by starting my own business. It staggers me that any directors over the last 7-8 years didn't see through the crap spun by Mr Malley and say no to financing his media profile.

The level of incompetence in the fact they screwed up the Sec 202 notice says it all. An EGM must happen and the board and remaining senior executives removed.

My level of embarrassment at being a CPA in public practice grows every day. Also the end of the limited liability scheme is another example of the incompetence of the board and management. They don't seem to grasp the cost and inconvenience of the end of the scheme. Just shut down CPA Advice and grovel.

I feel a bit better now, thanks for reading.

the.beenie
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Joined: Fri Jun 23, 2017 10:47 pm

Re: Board Of Directors sins

Post by the.beenie » Sun Jul 02, 2017 12:20 pm

Steve Hamilton wrote:
Sun Jul 02, 2017 12:46 am

My level of embarrassment at being a CPA in public practice grows every day.
I experienced this exact situation on Thursday during an initial meeting with a potential new client. One of the questions asked was
whether I was a CPA. When I confirmed I was, they shook their heads and said "terrible thing thats happening down there"
(of which i was in 100% agreement with them)

I left that meeting thinking if my Association has stuffed up that bad that now even new clients are
second guessing coming on board due to my CPA status.

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The Nude CPA
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Re: Board Of Directors sins

Post by The Nude CPA » Sun Jul 02, 2017 3:16 pm

Steve Hamilton wrote:
Sun Jul 02, 2017 12:46 am
It staggers me that any directors over the last 7-8 years didn't see through the crap spun by Mr Malley and say no to financing his media profile.
It's hard to see what's going on when you've got your snout buried in the same trough.
Steve Hamilton wrote:
Sun Jul 02, 2017 12:46 am
The level of incompetence in the fact they screwed up the Sec 202 notice says it all. An EGM must happen and the board and remaining senior executives removed.
Yep; an EGM is the only way forward.

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The Nude CPA
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Re: Board Of Directors sins

Post by The Nude CPA » Sun Jul 02, 2017 3:19 pm

the.beenie wrote:
Sun Jul 02, 2017 12:20 pm
Steve Hamilton wrote:
Sun Jul 02, 2017 12:46 am
My level of embarrassment at being a CPA in public practice grows every day.
I experienced this exact situation on Thursday during an initial meeting with a potential new client. One of the questions asked was
whether I was a CPA. When I confirmed I was, they shook their heads and said "terrible thing thats happening down there"
(of which i was in 100% agreement with them).
Did they understand that it's the actions of an unethical greedy few at the top and not a reflection of the average CPA member?

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nakedadmin
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Re: Board Of Directors sins

Post by nakedadmin » Sun Jul 02, 2017 4:00 pm

Steve Hamilton wrote:
Sun Jul 02, 2017 12:46 am
The level of incompetence in the fact they screwed up the Sec 202 notice says it all. An EGM must happen and the board and remaining senior executives removed.
The s202B was not just screwed up for incompetence. The additional disclosure last Friday does not address all the issues with the first one. E.g. payments to Directors of the Australian companies that were not in the capacity of Director (if any) have still not been disclosed. I can't believe Deloitte rented out their name for it.

But they did change the basis of preparation on the second one and I guess that means they at least figured out the basis of preparation of the first one was wrong. But they are not reissuing it or issuing a single disclosure that covers it all. They are playing games with the Basis of preparation and splitting it up, probably to get out of disclosing some payment to one of the Australian Directors that was perhaps paid to them by the Foreign subsidiary. Petty lives in Hong Kong by the way.

Not to mention that the amounts they disclosed did show that some Directors were paid above the Article 45 constitutional limits. So what is worse than that, that they do not want to disclose it and would rather breach the corporations act.

But personally I think it not just incompetence.
The Naked Webmaster

Steve Hamilton
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Joined: Mon Jun 19, 2017 11:49 am

Re: Board Of Directors sins

Post by Steve Hamilton » Sun Jul 02, 2017 8:41 pm

I take your views on board Naked Admin, the Sec 202B, yes probably more than incompetence.

passedfc
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Re: Board Of Directors sins

Post by passedfc » Thu Jul 06, 2017 9:14 am

Agree with all above and I also am ashamed to be one of the many apathetic members who let this happen to CPA.
The level of incompetence and greed of the board and executive is stunning and we can only hope that it can be corrected and some sort of credibility restore to the CPA standing. One thing for certain is that this situation will go down as the case study as one of the worst corporate governance failures for a long time. hopefully others learn from this sad situation.

GatorCPA
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Joined: Mon May 01, 2017 5:47 pm

Re: Board Of Directors sins

Post by GatorCPA » Thu Jul 06, 2017 1:37 pm

Just a CPA who's been following up the issues here.

one thing I'm curious about and not seen mentioned around here so far.

Anyone know what is happenning to all of those ex-director's and Deloitte's auditor's professional status? With things like this on the news, shouldn't their CPA/CA/FCPA status already be suspended or revoked?

Beancounter
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Joined: Thu Mar 30, 2017 4:44 pm

Re: Board Of Directors sins

Post by Beancounter » Sun Jul 16, 2017 10:11 pm

Why would their cpa status be revoked? And by whom? By their mates? I fully expect to see life member status being bestowed. No annual fees to be paid!

As for the auditor. Somehow I don't think they are losing any sleep over this.

Time4Change
Posts: 104
Joined: Mon Jun 05, 2017 2:20 pm

Re: Board Of Directors sins

Post by Time4Change » Mon Jul 17, 2017 10:57 am

As an Member association, life members should be put to a vote to members not the board to choose who they give. We members should be the voting power. So this need to be changed as well and as those members sitting on the board have cause disgrace to CPA, its reputation and us members, members should vote to remove their life membership.

chuck_meister
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Joined: Fri Mar 31, 2017 8:58 am

Re: Board Of Directors sins

Post by chuck_meister » Mon Jul 17, 2017 4:47 pm

Here is the currently list of all Life members form the 2016 annual report.
You'll notice that Wade, Petty, Malley, Egan are there. Interestingly the
chair of the independant review Ian McPhee is also one.

Life members.png
Life members.png (40.75 KiB) Viewed 4679 times

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Brett Stevenson
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Re: Board Of Directors sins

Post by Brett Stevenson » Tue Jul 18, 2017 7:01 pm

I think what is also very 'telling' from this list is that three of the life members - Elizabeth Alexander, Brian Waldron and Graeme McGregor - are also signatories to the recent letter from past leaders of CPA to the board.
I won't spell out what it is telling me but you hardly need to be a rocket scientist to work it out.
Its also worth noting that from this list Penny Egan was effusive in her praise for Alex Malley recently, we all know where Richard Petty and Graeme Wade stand (and they are both still on the board in their 12th years), and Alex Malley recently was 'sacked' with a parting $4.9 million.
There is a lot that can be read into this list of life members.
For me, I would suggest some of the more recent appointments need to be reviewed and reconsidered.

Sunkcost
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Re: Board Of Directors sins

Post by Sunkcost » Tue Jul 18, 2017 8:34 pm

The "who you know" list

just shows how pathetic this "fiercely independent review" is when one of those gifted a lifetime membership is chairing the review.

slaa4044
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Joined: Thu Mar 30, 2017 7:33 pm

Re: Board Of Directors sins

Post by slaa4044 » Mon Jul 24, 2017 9:23 pm

And ... did we know about this?

http://www.perthnow.com.au/news/western ... 1979738cab

Michele Dolin sacked!

passedfc
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Re: Board Of Directors sins

Post by passedfc » Tue Jul 25, 2017 8:11 am

Slaa4044.. Thanks for the news update
Michele Dolin... an over paid underperformer... no wonder she fits into the Current CPA board ... nice big salary.. great payout.. !!!
It continues to beggar belief as to how these people get the jobs.. do nothing.. and then get rewarded for doing nothing !!
Her comments just make me want to vomit... Negative return for the fund (11%) and she gets a $160,000 payrise.. that what we teach them at CPA !!!

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nakedadmin
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Re: Board Of Directors sins

Post by nakedadmin » Tue Jul 25, 2017 8:01 pm

I read it as she is pursuing a strategy of privatisation with the main benefit being her pay packet! Then they cotton on ans sack her, she get's a year payout and says she left it in great shape, who want's my super great expertise next? What a resume.
The Naked Webmaster

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