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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ABC business news today: CPA directors rebuild

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theallseeingeye
Posts: 99
Joined: Sat Jun 03, 2017 4:23 am

ABC business news today: CPA directors rebuild

Post by theallseeingeye » Fri Oct 06, 2017 9:05 pm

Continued coverage - will there be accountability?

CPA Australia: New board attempts to rebuild from the rubble but questions remain as members depart

http://www.abc.net.au/news/2017-10-06/c ... n=business

JWheldon
Posts: 367
Joined: Wed May 24, 2017 6:43 pm

Re: ABC business news today: CPA directors rebuild

Post by JWheldon » Fri Oct 06, 2017 9:21 pm

This article reinforces the questions and issues raised by Nakeadmin. Let the members see the contract of Alex Malley.

http://www.abc.net.au/news/2017-10-06/c ... n=business

CPA Australia: New board attempts to rebuild from the rubble but questions remain as members depart
By business reporter Liz Hobday - 6 October 2017

The new directors of CPA Australia took their seats in the boardroom this week, with the accounting organisation still in a state of flux.
Key points:

New board meets after CPA implosion which saw the chief executive and the majority of directors depart
Questions over the loss of professional insurance has caused disquiet
Dissident members argue independent review hasn't gone fair enough on corporate governance and over-payment questions

One of the first items on the board's agenda was reinsuring thousands of accountants, with the public indemnity CPA provides set to expire almost immediately.

The CPA-appointed panel reviewing the dysfunctional organisation is also facing legal demands to dig deeper into the CPA management debacle.

For financial adviser Steven Thomas, the last straw was the question mark over the professional indemnity insurance which is meant to protect him from multi-million-dollar lawsuits.

Without this legal shield, Mr Thomas is worried where he stands with the law and is now giving up his membership of CPA Australia.

"I think that is really critical," Mr Thomas told The Business program.

"Because if you don't have the documentation to prove that you're doing the right thing then how do you say to your licensee 'oh yeah I am' - you can't just say 'oh believe me'," he said.

CPA's insurance scheme covered almost 7,000 public practice accountants.

But when CPA set up its controversial, loss-making financial advice arm CPA Australia Advice, it created a conflict of interest, and the scheme wasn't renewed.

Quality of the independent review questioned

While CPA has organised extra cover for its members, this came on top of questions about CPA chief executive Alex Malley's conduct and spending.

CPA directors started heading for the door.

All this prompted CPA Australia to appoint a panel of experts, headed by former Commonwealth Auditor General Ian McPhee, to run what was promised to be an independent review of the organisation.

The man behind the membership revolt, CPA member Brett Stevenson, has been critical of the review's initial findings.

"It's been very weak and deficient in that it's suggested no real action against the people responsible for causing the problem," Mr Stevenson said

"It really has done nothing to redress the people who have been wronged."

The panel found Mr Malley and other key executives were paid too much.

It also found the board and Mr Malley had lost touch with a large section of the organisation's membership.

Despite these initial findings, Mr Stevenson's lawyers have written to the panel, demanding it investigates any potential breaches of the Corporations Act.

He wants a deeper investigation of the board's decision to set up CPA Australia Advice, which lost almost $6 million of members' money last year.

Mr Malley's $4.9 million contract termination payment is also a serious issue for Mr Stevenson.

"It's a scandalous termination pay and yet it's almost just dismissed as [a] contractual obligation, and yet we haven't even seen the contract."
'More needs to be done'

Brett Stevenson argues reparation is also needed for CPA members.

"Those responsible for those failings in some way need to be held to account," he said.

"The corporations law is very clear on directors' duties and their fiduciary duty in particular to the members and to the organisation."

He believes the panel has so far avoided these issues.

"I find that really sad given the optimism with which we approached their work."

CPA Australia has declined to comment for this story, while its independent panel hasn't responded to the ABC's requests for an interview.

Whatever its ultimate findings, the new board will have its work cut out — dealing with CPA Advice, re-setting executive pay, and regaining the trust of its disillusioned members.

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