Queensland Director Selection Process To Recommence

On 13 August 2009, a Selection Committee was convened to select a Preferred Candidate for directorship of Limited (“GQL”).

After the Selection Committee met and a Preferred Candidate was put forward by the Class A Member Representatives in attendance, GQL received letters from numerous Class A Members expressing concern that they had not had the opportunity to consider their preferred candidate or participate in the Selection Committee process as outlined in GQL's Constitution (“Constitution”).

Due to those concerns GQL sought legal advice on whether the process on 13 August 2009 was valid under the Constitution. The legal advice that GQL has received is that, due to the irregularities underlying the Selection Committee process on 13 August 2009 the appointment of a Preferred Candidate at that meeting was not valid under the Constitution.

As a result, GQL must recommence the process for selecting a Preferred Candidate for directorship as if that meeting had not occurred, although it presented an invaluable opportunity for the various members to meet and interview the candidates.

GQL apologises for any inconvenience this may have caused and would like to stress that the reason the Selection Committee process must recommence is solely due to procedural irregularities.

The shortlist of the Director Candidates will remain the same as the one distributed on 3 August 2009 and all of those shortlisted will be eligible to be elected as the Preferred Candidate. In effect, the process will simply recommence from that point.

As this is the first time that GQL has undertaken the complicated director selection process it is extremely important for GQL and its Members to have certainty regarding the process to be followed so as to ensure that any incoming director is validly appointed.

GQL has been provided with detailed advice regarding the exact steps that must be undertaken in the appointment of a Preferred Candidate under the Constitution and details of these procedures has been prepared by the legal advisors and have been provided to all GQL Class A and B members, from now on, the director selection process will occur correctly and efficiently.

Greyhounds Queensland

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