Some investors want several Crown Resorts directors to quit before next week’s general meeting.
Australia.- The scandal surrounding Crown Resorts could lead investors to oust the group’s directors following the NSW Independent Liquor & Gaming Authority (ILGA) hearing, which concluded last week.
A group of investors has told Bloomberg they want Crown’s directors to quit over the failures in governance exposed by the New South Wales inquiry. They want several long-serving directors to go before the company’s general meeting takes place next week.
Louise Davidson, chief executive officer of the Australian Council of Superannuation Investors said: “A number of long-serving directors should be considering their position in light of what has emerged.”
She said the findings of the inquiry “reflect poorly on the board as a whole.” “Investors will be looking for director accountability,” she added.
A decision may depend on former director James Packer, since he still holds over 37 per cent of the company’s shares. During his statement to the ILGA hearing, he said he would not return to the board and that it would now be more independent.
Board members Jane Halton, John Horvath and Guy Jalland, who is the head of Packer’s private investment company, are seeking re-election at the meeting on October 22.
The ILGA inquiry, overseen by retired Supreme Court Judge Patricia Bergin, is deciding if the firm should keep the casino licence for the property it is building in Sydney, which is set to be inaugurated before the end of the year.
The decision of ILGA’s inquiry is expected for February 2021.