A group of CPA members banding together to challenge the CPA’s corporate governance has sought legal advice as to whether the decision to hold the AGM in Singapore might be in contravention of the Corporations Act.
CPA facing potential lawsuit from members
Last week, CPA announced to its members via email that its 2017 annual general meeting (AGM) will be held in Singapore on 27 April.
NSW-based accountant and CPA member Brett Stevenson is leading a group of disgruntled members seeking to drive change through a special members resolution, which had 110 signatories as of yesterday.
According to a document seen by Accountants Daily which was circulated among members of the rebellion, Mr Stevenson sought legal advice as to whether moving the AGM to Singapore could represent a contravention of the Corporations Act.
The allegation relates to a possible breach of Section 249R of the Corporations Act, which states that a “meeting of a company’s members must be held at a reasonable time and place”.
While admitting there are lots of arguments both ways, the document says that it could be argued that Singapore is not a reasonable place given that more than 75 per cent of members reside in Australia and only 5 per cent in Singapore.
The document anticipates that if challenge is made, CPA Australia will use its "financial muscle" and put up a strong legal defence.