We won’t go, say Crown Resorts CEO Ken Barton and director Andrew Demetriou

Crown Resorts chief executive Ken Barton and director Andrew Demetriou are resisting calls for them to stand down.

Crown Resorts chief executive Ken Barton.

Crown Resorts chief executive Ken Barton and director Andrew Demetriou are vehemently resisting calls for them to stand down, despite a surprise move by James Packer to sever all ties with the board of the casino operator.

Mr Barton and Mr Demetriou were refusing to stand down on Wednesday ahead of a scheduled evening meeting of the board, after Crown chairwoman Helen Coonan met with Independent Liquor and Gaming Authority chairman Philip Crawford.

Mr Barton and Mr Dem­etriou are believed to have been advised by confidants that their positions are untenable in the wake of criticism made by former NSW Supreme Court judge Patricia Bergin, who oversaw the ILGA’s long-running review.

Ms Bergin’s report, published on Tuesday, found Crown was unsuitable to hold a gaming licence in NSW because of serious corporate failings — keeping gambling floors at the company’s flagship $2.2bn Barangaroo development closed.

The ILGA review, which was commissioned after it emerged Mr Packer was attempting to sell part of the business to Hong Kong billionaire Stanley Ho against ­licence rules, made particularly trenchant criticisms of Mr Barton, Mr Demetriou and several other current and former directors.

Ms Coonan, sources said, had been emboldened in her desire to restructure Crown by the support given to her in the Bergin report, which noted her “character, honesty and integrity (have) not been, and could not be, called into ­question”.

If Ms Coonan requests the resignations of Mr Barton and Mr Coonan and they accept their fate, their departures could be announced to the Australian Securities Exchange as early as Thursday morning.

Political and business figures in Melbourne are said to be concerned about the lack of Victorian representation on the Crown board, should Mr Demetriou resign. It would leave only former advertising king Harold Mitchell as a Melbourne-based director and questions have been raised about whether he will also depart as part of Ms Coonan’s board renewal process.

It is understood Mr Demetriou believes he has done nothing wrong and is being unfairly condemned for taking notes with him when he appeared before the ILGA inquiry.

Mr Barton is believed to be keen to remain in the job to continue his reform of Crown’s processes, despite Ms Bergin describing him as “unimpressive” and noting ILGA “would be justified in concluding that it cannot have any confidence in dealing” with him. As the company’s former chief financial officer, Mr Barton has strong ties with Crown investors and lenders and inter­national ratings agencies.

Both men declined to comment on Wednesday.

Ms Bergin was particularly scathing of Mr Demetriou, a former AFL executive, describing his evidence as “quite bizarre” and reflecting “badly on his judgment”.

The respective positions of Mr Barton and Mr Demetriou are in stark contrast to Mr Packer’s, who signalled in the strongest of terms on Wednesday that he was prepared to work with Crown and the ILGA to make the company suitable to retain its Sydney licence.

Mr Packer, who owns 37 per cent of Crown through his private vehicle Consolidated Press Holdings, said two of his three nominee directors — Michael Johnston and Guy Jalland — would retire from the gaming company’s board. The third, West Australian businessman John Poynton, will become an independent director.

“The issue of CPH’s representation on the Crown board, and future communications between those representatives and CPH, were potentially complex matters for ILGA and Crown to resolve,” CPH said in a statement on Wednesday. “The steps announced today take them off the table, giving Crown’s board clear air to work with ILGA in the execution of its announced reform agenda, and become a model casino operator. CPH supports these efforts.”

Mr Packer will be given the opportunity to argue the case to remain a major Crown shareholder, despite Ms Bergin describing him as a “deeply flawed” close associate of the gaming company.

The ILGA will consider the matter when it meets on Friday and later this month.

Mr Crawford on Wednesday said suggestions that Crown would have to “blow itself up to save itself” were “pretty close to the mark”, but the ILGA was confident Ms Coonan could satisfy the authority that Crown was committed to reform by April, paving the way for the Sydney ­casino’s opening.

“I saw her give evidence and she was impressive,” he said.

NSW Premier Gladys Berejiklian would on Wednesday not be drawn on whether further resignations from Crown’s board were needed, but said it was clear what changes the company needed to make to be deemed an acceptable casino operator.

“It’s all there in black and white. I’m sure both Crown and any other organisations will read that report carefully and accept what action has to occur before anybody can have a licence in NSW,” she said.

The ILGA report found Crown’s risk management and corporate governance was compromised and directors were not informed of significant problems with operations.

The company was exposed to the risk, which was realised, that it would be exploited by criminals for money laundering, Ms Bergin concluded, noting Mr Packer was given confidential information despite not being on the board.

She said his “remote manoeuvring” of the company should end, and former chairman John Alexander’s loyalty to the Packer family may have blinded him to serious issues.