Wednesday 8 July 2020
Yesterday, KordaMentha released their report into the administration of Equestrian Australia.
The Administrators report has made it clear that the votes of Victoria, Tasmania, South Australia and New South Wales will not count because our members are no longer creditors with EA. Having renewed your membership, you are now members of "Equestrian Australia in Administration."
This means that 73% of Equestrian Australia’s membership WILL NOT have a valid voice in the future of the sport.
To be clear:
- The KordaMentha report clearly shows that EA is solvent with net assets of more than $1.8m. Therefore, the administration process is unrelated to insolvency and will waste more than $250k of member funds.
- It is evident that the administration process is being used to drive constitutional change. ESA supports constitutional reform, but in a methodical and engaged way that ensures change is for the better.
- Clause 2.5.2 (Page 6 of the KordaMentha Report) states that: “Members of EA whose membership period expired on 30 June 2020 no longer have a claim in the Administration.” Therefore, ESA members’ votes will only be used for the purpose of understanding your views, they will not formally count towards the resolutions.
- Only Queensland, Western Australia and Northern Territory - who run calendar membership years – membership votes' will count. This means that only 27% of the Equestrian Australia membership votes will be counted towards the resolutions of the second meeting of creditors.
- KordaMentha and the remaining four EA Directors are denying votes to South Australia and other states based upon a technicality. This is not a fair or equitable approach, and we are fighting to ensure your views are represented.
KordaMentha are asking you to participate in a non-binding plebiscite, we know you, our members, would like to be heard. Therefore if you chose to participate in the Second Meeting of Creditors, we recommend you vote to support the DOCA developed by the 5 states. Resolution 4 combined with our model for future voting at EA, provides a voice for members, disciplines, coaches and states. ESA’s recommendation is that you exercise your vote as per below.
Resolution 1 - AGAINST
Resolution 2 – FOR
Resolution 3 – FOR
Resolution 4 - FOR
Resolution 5 - AGAINST
Resolution 6 - AGAINST
Resolution 7 - AGAINST
Resolution 8 - AGAINST
Resolution 9 - FOR
A link to the resolutions can be found here.
Equestrian South Australia will continue to work in the best interests of the whole membership, and we encourage you to stay engaged with us.
Chair, Equestrian South Australia