By Caroline Wilson of The Age
March 25, 2004
Richmond vice-president Brendan Schwab quit the Tigers after accusing president Clinton Casey and his treasurer Garry Cameron of breaching the Corporations Act in a fiery board meeting earlier this month.
Schwab is understood to have outlined in a letter to his former directors his concerns over a revelation that the club would lose $2 million in 2004. The meeting, which provoked the resignations of both Schwab and Peter Welsh, is believed to have recorded that the club was facing a massive 2004 loss despite forecasting a break-even result last October.
As the financial and political crisis that has engulfed the Tigers deepened on the eve of the club's round-one clash against Collingwood, Casey's position appeared under increasing threat as he worked to shore up support.
Schwab's concerns about corporate law, which were shared by Welsh despite earlier reports the resignations were not linked, could provoke AFL scrutiny should the Tigers be forced to request a seven-figure handout from the competitive balance fund.
The Age has learnt that the March board meeting was the first time the directors had met - apart from January's annual meeting - since October when Schwab is understood to have opposed Casey's proposal to underwrite the club.
It is understood that Schwab had been pushing for urgent talks for some months after learning that the club's 2003 accounts had been sent to members without being signed off by directors. His request was refused.
Under federal corporate law, the club's concise financial accounts - which recorded an $800,000 loss last year - require a directors' declaration. While Casey and Cameron signed the accounts as having been declared and adopted by the board, no such declaration had taken place.
The club is understood to have applied since then for a redirection order from the AFL. The potential $2 million loss is expected to be improved following an injection of funds from the club's fund-raising arm - the Jack Dyer Foundation.
Schwab, a lawyer, has outlined his concerns in the potentially explosive letter distributed to all directors earlier this week.
The letter is expected to be tabled at the Tigers' next board meeting early next month. Schwab is understood to have written his resignation before the March meeting but attended to address his concerns with the club's corporate governance.
His questioning of the board's corporate procedure sparked an angry personal attack from treasurer Cameron. Welsh is understood to have made it clear to colleagues that despite taking on the football director's position this year, his resignation was not linked to concerns with Danny Frawley's position as coach, as has Schwab.
Casey yesterday stood by his vow to rid the board of non-performing directors. It is understood he retains strong support of Cameron, and Don Lord, chairman of the Jack Dyer Foundation.
The Richmond meetings are attended not only by directors but also former National Party leader Peter Nixon, who acts a consultant to the board, and corporate lawyer Ian Dixon, the board's legal adviser.
Casey did not return calls from The Age last night.
www.theage.com.au www.realfooty.com.au
March 25, 2004
Richmond vice-president Brendan Schwab quit the Tigers after accusing president Clinton Casey and his treasurer Garry Cameron of breaching the Corporations Act in a fiery board meeting earlier this month.
Schwab is understood to have outlined in a letter to his former directors his concerns over a revelation that the club would lose $2 million in 2004. The meeting, which provoked the resignations of both Schwab and Peter Welsh, is believed to have recorded that the club was facing a massive 2004 loss despite forecasting a break-even result last October.
As the financial and political crisis that has engulfed the Tigers deepened on the eve of the club's round-one clash against Collingwood, Casey's position appeared under increasing threat as he worked to shore up support.
Schwab's concerns about corporate law, which were shared by Welsh despite earlier reports the resignations were not linked, could provoke AFL scrutiny should the Tigers be forced to request a seven-figure handout from the competitive balance fund.
The Age has learnt that the March board meeting was the first time the directors had met - apart from January's annual meeting - since October when Schwab is understood to have opposed Casey's proposal to underwrite the club.
It is understood that Schwab had been pushing for urgent talks for some months after learning that the club's 2003 accounts had been sent to members without being signed off by directors. His request was refused.
Under federal corporate law, the club's concise financial accounts - which recorded an $800,000 loss last year - require a directors' declaration. While Casey and Cameron signed the accounts as having been declared and adopted by the board, no such declaration had taken place.
The club is understood to have applied since then for a redirection order from the AFL. The potential $2 million loss is expected to be improved following an injection of funds from the club's fund-raising arm - the Jack Dyer Foundation.
Schwab, a lawyer, has outlined his concerns in the potentially explosive letter distributed to all directors earlier this week.
The letter is expected to be tabled at the Tigers' next board meeting early next month. Schwab is understood to have written his resignation before the March meeting but attended to address his concerns with the club's corporate governance.
His questioning of the board's corporate procedure sparked an angry personal attack from treasurer Cameron. Welsh is understood to have made it clear to colleagues that despite taking on the football director's position this year, his resignation was not linked to concerns with Danny Frawley's position as coach, as has Schwab.
Casey yesterday stood by his vow to rid the board of non-performing directors. It is understood he retains strong support of Cameron, and Don Lord, chairman of the Jack Dyer Foundation.
The Richmond meetings are attended not only by directors but also former National Party leader Peter Nixon, who acts a consultant to the board, and corporate lawyer Ian Dixon, the board's legal adviser.
Casey did not return calls from The Age last night.
www.theage.com.au www.realfooty.com.au
