PwC partner Richard Gregg sues to stop removal from firm
PwC partner Richard Gregg has sought temporary orders to stop the firm removing him from its partnership over claims he was involved in the tax leak scandal.
PwC Australia partner Richard Gregg claims the firm has failed to explain why he should be removed from the partnership, filing an urgent court application that names all 11 of the professional services giant’s Australian governance board.
Documents from the NSW Supreme Court show Mr Gregg claims PwC has not shown that he breached clauses in the firm’s partnership agreement that allow it to force partners to retire.
PwC’s partnership agreement allows the firm to recommend a partner be removed if they are found to have committed a material breach of the agreement or breached the code of conduct.
In court filings, supported by exhibits that have been suppressed by the court, Mr Gregg claims PwC has not spelt out its reasoning for why he should retire, in what legal sources said amounted to an administrative challenge.
Court orders sighted by The Australian show Mr Gregg secured temporary orders barring the firm from removing him from the partnership in the courts on Wednesday, after PwC named him as one of several partners to be removed on July 3.
PwC said it had told Mr Gregg he was to be removed for “similar reasons” as for partners Eddy Moussa and Peter Kondaris, who the firm claimed “failed to meet their professional responsibilities”.
New PwC chief executive Kevin Burrowes, who landed in Australia on Monday, is one of 11 PwC governance board leadership named in the court papers.
PwC governance board chair Justin Carroll, deputy chair Clara Cutajar, partners Tracey Kennair, Adrian King, Joe Short, Norah Seddon, Paddy Carney, Paul Abbey and Sumanth Prakath, and partnership secretary Carolyn Sinclair are all named by Mr Gregg.
However, Ms Kennair and Ms Carney have both announced they will step down from their roles on the governance board.
Corrs Chambers Westgarth head of class actions Chris Pagent is acting for Mr Gregg, while Company (Giles) principal and defamation lawyer Rebekah Giles is representing him.
The orders by the NSW Supreme Court set up a showdown between PwC and Mr Gregg as the two sides battle over links to the tax scandal haunting the professional services giant.
Justice David Hammerschlag has given Mr Gregg until Friday 4pm to file his claims against PwC, which has been required to respond by 4pm on Monday. The two sides will fight it out on July 26.
PwC has faced months of criticism after it was revealed confidential tax briefings were shared with many members of the firm by the former head of international tax, Peter Collins.
PwC used these briefings to sell strategies to clients to attempt to minimise their tax.
A number of other partners have been forced out of the firm, and several former partners have been removed from its lucrative retirement structure.
These include former PwC CEO Tom Seymour and partners Peter van Dongen and Wayne Plummber, who also face a process to remove them from the firm’s partnership agreement.
Mr Seymour declined to comment.
Separately, members of the Senate finance and public administration committee have called for Deloitte to be recalled to face questioning over allegations a former partner from the firm leaked confidential Defence documents to clients.
Originally published as PwC partner Richard Gregg sues to stop removal from firm
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