By Carla Jaeger
A move by a Kooyong Lawn Tennis Club members’ group to overhaul the prestigious club’s board is gaining momentum.
The Kooyong for Members group is planning to vote for a complete overhaul of the board at an upcoming meeting as the fallout from the discovery millions of dollars was missing continues to engulf the tennis venue.
A powerful group of Kooyong Lawn Tennis Club members is demanding answers from the board.Credit: Getty Images
The move comes amid news announced by the club on Friday that its recently appointed chief financial officer, Derek Stokes, had resigned from the role before his start date.
Stokes had been due to begin the role in the middle of this month, according to a club announcement in early February.
But in a member update, the board said Andrea McCarthy, a former Tennis Australia employee with decades of financial management experience, would now fill the position and would start on Wednesday.
The turmoil within the club follows the release of a report compiled by accounting firm Grant Thornton into the club’s books. The report found poor financial management and reporting were to blame for a $2.4 million loss detailed in the club’s 2023 annual report.
The landing page for the newly launched Kooyong for Members website.
It also found, “Inappropriate accounting practices were in operation for the recording of the actual costs of both food and labour. The actual costs were not being reconciled and reported until the end of the financial year.”
The board has refused to publish the full report to members, claiming commercial in confidence, but it has agreed to a special general meeting later this month to discuss its findings.
The grassroots Kooyong for Members group is planning to vote to oust the current board on March 25, after a meeting between the two parties left key matters unresolved.
The Kooyong for Members group is led by a collective of six members who are notable Melbourne business figures: corporate finance guru Fiona Hansen; investment banker Enrique Klix, who is CEO of Integral Acquisition Corporation 1; former media executive Jed Bertalli; Michael Richards; Rob Dennis; and Mike Mitchell.
In a summary sent to members on Thursday detailing the outcome of a recent meeting between the grassroots group and the board, they wrote:
“Unfortunately … it became evident to the member representatives that the need for accountability, greater transparency, particularly on legacy issues, better governance, and a positive fresh start, would be best achieved through a fully refreshed board.”
The group said it proposed a plan at the meeting, which also outlined the benefits of a “co-operative transition to a new board”. This proposal was not accepted by the board, the group said.
The letter also detailed a list of financial information the group has requested but not received from the board. Under rules set out by Consumer Affairs Victoria, the regulatory body for Kooyong Lawn Tennis Club, the club is required to share documentation requested by members. There are exemptions that allow the board to deny requests, such as for commercial-in-confidence matters.
Club interim president Darren O’Loughlin did not respond to questions by this masthead concerning the Kooyong for Members letter.