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Crown director John Poynton hires former ANZ General Counsel to fight for directorship amid questions on his Packer links

The Perth businessman and chairman of Crown Perth has appointed his own legal counsel as he gears up for a fight.

John Poynton is understood to be relying on the support of Commissioner Patricia Bergin. Aaron Francis/The Australian
John Poynton is understood to be relying on the support of Commissioner Patricia Bergin. Aaron Francis/The Australian

The sole Perth-based director of the embattled James Packer-backed Crown Resorts, John Poynton, has appointed his own legal counsel as he gears up for a fight to retain his position on the board amid calls by the NSW Gaming regulator for him to step down.

The Australian understands Mr Poynton has appointed Melbourne-based Jones Day partner Tim L’Estrange, the former General Counsel and company secretary at ANZ Bank, to advise him as he fights to remain on the board for the upcoming Western Australian inquiry into Crown’s fitness to retain its Perth licence and beyond.

This week the Victorian government also announced a royal commission into Crown, which has given Mr Poynton added impetus to remain as a director to support the company. He believes he has an important role to play in Crown‘s board and management renewal process.

Earlier this week former advertising magnate Harold Mitchell resigned from the Crown board, bringing to four the number of directors who have resigned since the release of the bombshell Bergin report that found Crown was unsuitable to retain its Sydney licence.

Crown chief executive Ken Barton has also resigned, replaced by Helen Coonan who has been elevated to the executive chairman role.

Another director, deputy chairman John Horvath, is planning to step down from the board but his departure has been delayed following Mr Mitchell’s move.

The remaining directors are Jane Halton, Toni Korsanos and new appointee Nigel Morrison, a former chief executive of rival casino group Sky City who is yet to pass probity approvals to formally take his position.

It is understood Mr Poynton, who is chairman of Crown Perth, has the support of senior WA government ministers to stay on the board.

Ms Coonan, a former federal Liberal minister, has made no public comment on Mr Poynton’s future, however she is said to be privately concerned about his position given his previous association with Mr Packer.

The chairman of the NSW gaming regulator, Philip Crawford, is investigating Mr Poynton’s independence following the Perth businessman’s recent move to severe ties with Mr Packer — Crown’s 37 per cent shareholder — and remain on the gaming company’s board as an independent director.

Crown has scrapped agreements for Mr Packer’s private company Consolidated Press Holdings (CPH) to provide services to the gaming giant and for Crown to provide confidential information to the billionaire.

Two of CPH’s nominee directors, Guy Jalland and Michael Johnston, have also resigned from the Crown board in the wake of the NSW inquiry findings.

The NSW Independent Liquor and Gaming Authority chairman is concerned Mr Poynton’s previously consultancy agreement with CPH could undermine his independence.

However ILGA has had no contact with Mr Poynton to discuss its concerns, after the Perth businessman declared last week he was not a “Packer acolyte” on the board and was ready and willing to discuss the issues with Mr Crawford. He declined to comment further on Wednesday.

Mr Poynton is understood to be relying on the support of NSW Inquiry Commissioner Patricia Bergin, who in her report released earlier this month noted “the commitment and contribution” of Mr Poynton would be “integral” to “Crown’s future success as a close associate of the Licensee” of its new Sydney casino.

He is said to have been vocal in the Crown boardroom in questioning the $2.5m remuneration package agreed for Ms Coonan, which was independently verified by remuneration consultancy Egan Associates.

Mr Poynton is also believed to have questioned the appointment of Arnold Bloch Leibler partner Leon Zwier to advise Ms Coonan.

One option for Mr Poynton may be to step down from the Crown Resorts board, while remaining as chairman of its subsidiary board Crown Perth, formally known as Burswood Nominees.

However he will resist any push to remove him from inside Crown or from regulators.

Earlier on Wednesday Crown said it had been informed by WA’s Gaming and Wagering Commission to cease all participation with junkets – gambling promoters who organise jaunts of VIP clients to casinos – and to stop participating in “premium player activity or privileged player activity.”

Crown said its Perth casino would comply with the order.

Read related topics:Anz BankJames Packer

Original URL: https://www.theaustralian.com.au/business/companies/crown-director-john-poynton-hires-former-anz-general-counsel-to-fight-for-directorship-amid-questions-on-his-packer-links/news-story/df1b1e61a50e1690ef9b3ebe68c8dc26