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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Class Action CPA Members V CPA Advice Board and Exec

Discussions about the constitution and how CPA Australia is run
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Chris Catto
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Joined: Tue Apr 04, 2017 12:18 pm

Class Action CPA Members V CPA Advice Board and Exec

Post by Chris Catto » Mon May 22, 2017 6:56 pm

As the time taken to respond to s.202 extends, its not unreasonable to surmise that not all is well at CPA HQ with disclosing Board and Executive remuneration.

Jeff Hughes in his March letter to members implied that a factor in the $1m increase in the board and Exec remuneration was influenced by payments for roles leading CPA Advice.

There are at least two key questions to answer from the Board and Exec.

1) With only 24 members of CPA Advice reported, it has been reported that CPA Advice has 20 staff along with Exec and Director costs, it appears that CPA Advice is not a viable business. Importantly, there is no indication from the Board and Executive on when CPA Advice will become a viable business let alone be able to pay back its loans to CPA Australia. IF CPA Advice is not viable business why are members of the Board and Executive receiving material increase in pay for leading the wholly owned entity? I don't recall the Exec for any of the international companies I worked at getting a pay raise for creating a new business that makes a significant loss with no prospect of an operating surplus for the foreseeable future.

2) If the Board and Executive are playing duel roles, then how much time is spend on CPA Australia's affairs as oppose to CPA Advice? If an Executive is spending 1 day per week on CPA Advice, then it reasons that they are spending 1 day less on CPA Australia 's affairs. If the Exec is not reducing their salary for the less time spent on CPA Australia, they have in effect given themselves a significant pay raise. 1 day being 20%.

Is there a case to suggest that the Board and Exec of CPA Advice have created a scheme to award themselves additional pay while not relinquishing any day to day CPA Australia responsibilities.

Does anyone have legal friends who are willing to looking into the possibility of a class action by CPA Australia Members against the Board and Exec of CPA Advice for creating a scheme for misappropriating CPA Australia funds through the guise of additional duties which have not been offset by for going current duties, and over paying themselves for an entity that potentially only has income of a few hundred thousand dollars a year and makes a significant operating loss with no break even position articulated for the foreseeable future?

Is there a case for a class action for failure of governance and misappropriation of member funds?

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Better Call Saul
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Re: Class Action CPA Members V CPA Advice Board and Exec

Post by Better Call Saul » Mon May 22, 2017 8:30 pm

Chris, I think you are making enquiries in a fruitful direction.

A request for access to information under Commonwealth Freedom of Information Act 1982 (FOI Act) has been lodged requesting ASIC Form FS01 - Australian financial services license application for CPA Australia Advice Pty Ltd. As we know the license was granted in April 2016. It includes financials and projections for the subsidiary.

Further, at the same time, another request was lodged for access to the following:-

Lodged by CPAA for period ending 31/12/2016:-

1) for CPA Australia Advice Pty Ltd, ABN 21 606 084 806, form FS70 for the period ending 31 December 2016, any annexures or attachments submitted with the form including financial statements
2) for CPA Australia Advice Pty Ltd, ABN 21 606 084 806, form FS71 for the period ending 31 December 2016, any annexures or attachments submitted with the form including the auditors report
3) for CPA Australia Advice Pty Ltd, ABN 21 606 084 806, any section 990K matters reported by the auditor and any attaching documentation

The documents will result in the release of subsidiary level financials which we hope will show the costs including salaries from the beginning of the entity.

It is my view the subsidiary has a more onerous burden when it comes to disclosures than the parent entity. But don't quote me on that until more work is done. Point being the details drop off on consolidation, conveniently.

CPAA didn't expect to come up against a member who specialises in financial services licensing now did they?

We will live and learn when this comes out.

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Brett Stevenson
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Re: Class Action CPA Members V CPA Advice Board and Exec

Post by Brett Stevenson » Mon May 22, 2017 11:31 pm

Great questions Chris.
It does not look good.

It is worth keeping in mind the colossal remuneration increase in 2016 (20% from $4.57 million to $5.51 million), and I would surmise much would be attributed to CPA Australia Advice , and as you rightly ask - why?
I think we are all waiting for the s202B statement of full disclosure of at least the boards remuneration to know exactly what the three senior executives (Malley, Awty and Hughes) actually received in 2016.

I think everyone is waiting for the statement to be sent to all the members who can vote which we estimate to be about 90,000 (isn't it amazing that they do not even have the openness to tell us how many full voting members we have. Isn't that just bizarre?)

Some of those who I reckon will be most interested in the disclosure and how the board will explain these scandalous remuneration levels will be the following (apart from we, the members of course)
  • the journalists/media from both the Fairfax, News and ABC stables, along with others
    the international accounting organisations such as the IFAC and CIMA to name just two
    the watching world (public) in Australia who are quite rightly sensitive to these remuneration levels
    the politicians who also will have a word or two about this
    the employers of the directors such as The Just Group, Sydney University, Macquarie Graduate School of Management, the Commonwealth Bank, Ericsson etc.
This is no small matter.

The directors may think silence, and scandalous remuneration levels, and minimum disclosure, and a tightly controlled board are okay on a board such as CPA Australia as currently established but I would suggest they need to get out of the bubble and enter reality pretty soon because this is going to break big time.
And Chris Catto's questions are as good a place to start as any I reckon.

Nate1
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Joined: Mon May 15, 2017 4:57 pm

Re: Class Action CPA Members V CPA Advice Board and Exec

Post by Nate1 » Tue May 23, 2017 11:14 am

I wonder how much more of the CPA members funds are being wasted on PR consulting, Spin doctoring and a Positive Media playbook strategy when the enviable bad publicity begins

A petition should be started to get Alex off channel 9!!

how can he talk about Kim Jong-un when he is running the CPA like a closed country!!

for those that havent seen it - https://www.youtube.com/watch?v=c374djxcgsk&t=13s
just spreading the love.

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nakedadmin
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Location: Iceland

Re: Class Action CPA Members V CPA Advice Board and Exec

Post by nakedadmin » Sat Jun 03, 2017 9:23 am

Perhaps the class action is for breaching article 45 of the constitution.
The Naked Webmaster

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Better Call Saul
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Re: Class Action CPA Members V CPA Advice Board and Exec

Post by Better Call Saul » Mon Jun 05, 2017 8:05 pm

My spreadsheet, as gathered through In The Black, calculates some directors are due to retire and some have been over paid. Should they pay the money back?
Directors terms and remuneration.JPG
Directors terms and remuneration.JPG (79.53 KiB) Viewed 2015 times

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Stomper
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Location: Sydney, NSW, Australia

Re: Class Action CPA Members V CPA Advice Board and Exec

Post by Stomper » Sat Jun 10, 2017 9:27 am

Carlin should be obliged to repay the fees he was paid for working 3 5 days a week when he only worked 1 - either that or he should repay the difference to Sydney Uni.....

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