Liquidation of Equestrian Australia avoided as creditors approve reform

Administrator KordaMentha’s proposal to reform the sport has been passed by the majority of creditors.

Equestrian Australia has avoided liquidation. Picture Sarah Reed

Equestrian Australia will live to ride another day, as the embattled body narrowly avoided going into liquidation on Tuesday after its creditors voted to support administrator KordaMentha’s proposal to reform the sport.

They agreed the administrators’ proposal, endorsed by Sport Australia, the Australian Olympic Committee and the international equestrian body, was the organisation’s best shot at having funding reinstated after Sport Australia withdrew it last month due to protracted gov­ernance issues.

The move comes after the five state branches of NSW, Victoria, Tasmania, South Australia and Western Australia revolted against the body’s receivership and offered their own proposal to reform the sport.

Their vision, which was ­un­supported by the major stakeholders and rejected at Tuesday’s meeting, would have been dis­astrous for riders across the nation­, effectively preventing com­petitions and events and dashing any hope of sending a team to the Olympics.

This was despite the fact that the state branches have the advantage of having a direct point of contact with members, whereas the national body does not.

Under the approved deed of company arrangements, Equestrian Australia must call a special meeting of its six state representatives to consider the constitutional amendment to give its 20,000 members equal rights to the states.

If that resolution is passed, KordaMentha will establish a nominations committee to form a skills-based interim board within 45 days. No EA board member who has served in the past three years will be appointed.

If the states refuse to comply, however, it is likely the national body responsible for a sport that has delivered Australia 12 Olympic medals, including three golds, will be wound up.

Equestrian Australia spokesman John Glenn welcomed the result of the vote on Tuesday, telling The Australian he was looking forward to the journey of rebuilding the sport in a more balanced and functional way.

“I would be very keen to see a kinder, gentler sport — more respectful of each other,” he said.

“I think the states should ­follow what the members have asked for.”

Critics of the administrator’s proposal, including the states, claimed the decision to place the body into administration was merely a “takeover by stealth” by Sport Australia to drive constitutional change at the embattled body, and not because Equestrian Australia was insolvent.

It is understood these assertions were “comprehensively shut down” during Tuesday’s creditor’s meeting, with KordaMentha pointing to the organisation’s COVID-related financial woes.

Equestrian Australia, which has received $13m in taxpayer funds over the past four years, is the first example of a Sport Australia intervention resulting in voluntary administration.

KordaMentha was appointed voluntary administrator in June to improve the “structure, culture and performance” of a sport that has cycled through three chairs and had its entire board reconstituted over the past 16 months.

On withdrawing its funding, Sport Australia said it did not “take these measures lightly but our priority is the long-term betterment of the sport and the welfare and safety of all EA athletes, participants, staff and volunteers”.

“The voice of the grassroots members is the next step in securing a stable, democratic and representative governance structure for equestrian sports,” a Sport Australia spokeswoman said.