SAJC court documents show concerns over $400m housing plan led to legal battle
Court documents show sensitivity over “secret plans” for a $400m housing estate at Morphettville racecourse are central to a legal battle between the SAJC and a former board member.
West & Beaches
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Concerns the South Australian Jockey Club failed to practise good corporate governance in making plans for a $400 million housing estate at Morphettville racecourse are central to the arguments of four defendants being sued by the club.
Court documents reveal former board member Kevin Harrison had concerns the SAJC had breached its constitution and contravened the Associations Incorporations Act 1985 (SA).
The race club alleges the “unauthorised misuse and disclosure” of confidential board information against Mr Harrison, his wife, Anne, and club life members Bill Spear and Joe Cannizzaro.
It claims Mr Harrison passed on confidential information to Mr Spear and Mr Cannizzaro despite explicit board instructions not to do so.
Mr Harrison argues he looked to the highly experienced former racing administrators for advice, as was his right and duty as a director, because of his concerns about the club’s expenditure on the housing proposal.
Sensitivity over an article in The Advertiser last July in which Mr Spear said club members were being “kept in the dark” about development plans is understood to have been a catalyst for court action launched in September.
Mr Harrison’s defence claims he had concerns senior management – and SAJC CEO Grant Mayer “in particular” – had failed to provide “sufficient and accurate information” to all board members.
In addition, he says details of board meetings were not recorded accurately.
Mr Mayer’s affidavit detailing the club’s claims, described in court as being “about a foot high”, remains sealed from public view by Justice Soulio who is hearing the case.
Documents reveal the SAJC board determined Mr Spear, a qualified accountant of 60 years and a former deputy chair, was not sufficiently “independent” to be an adviser to Mr Harrison.
It named four people it considered were “independent” that he rejected.
Mr Harrison is arguing the SAJC board cannot determine who is an independent person in respect to its own conduct. He has countersued claiming the jockey club’s decision to sack him last September as a director and cancel his club membership was invalid.
He says he was unlawfully denied his right to stand for the board at the 2019 SAJC election and, therefore, the election result is invalid.
He is seeking immediate reinstatement and reimbursement of legal costs.
Mr Spear and Mr Cannizzaro deny any of the emails forwarded to them by Mr Harrison contained confidential information.
Mrs Harrison, who is terminally ill, appears to have been named as a defendant primarily because emails were forwarded to her by her husband so she could print them out for him.