Board Issues
Manly in a mess as board members go to war over Perry appointment
by: Josh Massoud From: The Daily Telegraph August 31, 2012 12:00AM
MANLY'S finals charge would not be complete without another boardroom implosion.
And with September just one sleep away, the Sea Eagles have produced a fresh outbreak of hostilities that could dwarf all previous episodes.
We can exclusively reveal minority shareholder Penn Sport Pty Ltd has engaged its lawyer to rescind the recent contract extension of general manager David Perry, even though they don't want to lose the highly-regarded official.
That's correct: the chairman's (Scott Penn) company is threatening legal action to overturn the re-appointment of the club's highest-ranking administrator.
Right on cue. And only at Brookvale.
Penn last night said he was supportive of a contract extension and had only taken this step in protest of the process that led to Perry signing his new deal on July 25.
Perry confirmed the turn of events last night but just how did the latest war within Australian sport's most embittered boardroom erupt?
Discussion around Perry's contract extension began mid-year, before he fronted the entire board in late June. They all agreed he was the right man for the job.
It was proposed that he be offered a new three-year deal under the new title of general manager, which only needs a simple majority of the board's seven directors.
Had Perry's new contract been framed as a CEO appointment, Penn directors claim a 75 per cent majority would have been required.
Despite opposition on some of the formalities from the three Penn representatives, the motion was carried by a single vote thanks to remaining directors Darrell Williams, Bob Reilly, Phil Sidney and Drew Townsend.
But earlier this month - about a fortnight after Perry signed the contract - the Penns sent a multi-page legal letter to each of the directors who voted in favour.
"There's legal action ... and my job as chairman is to make sure we've got good governance," Penn said last night. "I want to be clear that we (Penn Sport) are very supportive of a contract extension for David Perry.
"But we need to go about it the right way."
The letter foreshadows court action to rescind Perry's contract and also claim any damages that result.
Â
We're told the letter claims Perry's re-appointment was in breach of the privatised club's constitution.
Penn Sport claims a 75 per cent majority was needed to delegate those powers to one director. It also maintains Perry has effectively been made CEO, nullifying the 4-3 vote and requiring a 75 per cent majority to validate the appointment.
The four directors have responded with their own legal letter, refuting the allegations.
And that's where this saga is poised, with Penn only returning to Australia from a business trip to the USA this week.
For the record, Perry's new deal does not take effect until November 1.
* * *
PENN jetted back to Australia just in time for Manly's scheduled board meeting last night, which we expect would have been interesting to say the least given developments.
But to his dismay the meeting has now been postponed until next week, with the venue also switched from Manly Leagues Club to ensure Reilly's attendance.
As revealed this week, the Sea Eagles deputy chairman cannot enter the licensed premises as a result of surrendering his membership last week. But what hasn't been revealed is that club great Cliff Lyons and Kerry Sibraa - a former president of the Senate - both resigned from the leagues club board in support of Reilly.