We hope to see you at the Chapter event this month where Peter Hill from International Software Benchmarking Standards Group will present on Software Estimation. Be sure to reserve your place early. We would also like to congratulate Simon David on his recent Award presetation by the ACS for his distinguished contribution to ICT in Australia in the field of electronic messaging and business support services. Simon has previously resided on the board for PMI Melbourne. The Membership Draw which was open to any new or renewing Chapter members has now been drawn by our guest speaker, Mark  Schröffel, during our last monthly event. The prize was a Visual PMBOK® Guide from jospar.com and winners were: - Campbell Benton
- William Kummer
- Bernadette Macken
We thank you to all participated. PMI Melbourne would like your feedback on Chapter events. A survey has been sent to all attendees for the last Chapter event. If you prefer to pass your feedback via email, please send to Events Director.
Regards,
Communications Team
Editors: Kirrilly Shipley and Annie Sheehan
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Information about the Melbourne Chapter's Defence against Legal Actions
At the last Monthly event, Lynda Bourne, President, made the following statement for the information of members. Please note that no questions or comments about the statement have been received since then.
Preamble
A Contingent Liability statement was included in the 2009 Annual report. In essence it stated:
- During early 2009 a legal proceeding was brought against the Chapter by a Chapter member.
The member nominated for the vacant 2009 Board Officer Role, but was not recommended as being suitable for election to the Board by the Nominating Committee and his name was not included on the ballot.
The member subsequently issued court proceedings against the Chapter seeking orders that he be placed on the Chapter's Board.
The Chapter expended $93,506 in legal costs in the proceedings during 2009.
The court case was adjourned in November 2009, and set for hearing in May 2010.
The Chapter will be required to continue funding the defence. As a consequence the Chapter will incur further expenditure in this matter during 2010. It is not possible to estimate the value of this additional expenditure.
The Chapter may recover some or none of the expenditure. The Chapter has an Insurance Policy with the PMI as required by the PMI and we may receive an insurance payout after the matter is concluded. Cost orders made by the Court are at the discretion of the Magistrate.
This brief and summary statement has been prepared to provide the membership of the Melbourne Chapter with an update about the ongoing legal matters between Graeme Bond (plaintiff) and the Melbourne Chapter.
This statement has been reviewed by the Board and by our legal team. I cannot take questions or comments tonight. However, if there are questions please submit them to me at president@melbourne.pmi.org.au. This statement will be published in the next newsletter with any questions and their answers.
Background
Mr Bond served as a Board member 2007 and 2008. There was no election in 2007 as the number of nominations equalled the number of vacant Board positions. The Board established a nomination process for 2009, and a process which included a requirement for all nominations to be recommended by a specially convened Nominations Committee (NC).
Mr Bond's nomination was not recommended by the 2009 Nominations Committee.
2009 dispute:
Mr Bond claimed
"Nominating committee is not valid - 2 members were members of the Board" AND
"NC did not:
- have set criteria to review nomination of candidates
- publish selection criteria
- give reasons for not recommending Mr Bond for election
Mr Bond claims that the NC breached the rules of "natural justice", and that the NC "failed to provide reasons for not recommending him"
Mr Bond named individuals on the Board and within the Chapter.
24/2/2009: Mr Bond filed an injunction to stop the AGM (on that day) - THE AGM DID GO AHEAD
In response the Chapter rejected and denied the allegations, and claimed that the Chapter rules and documentation provide criteria and these were followed by the NC . The NC claimed that 'reasons were given' both by email and through a conference call attended by the NC and Mr Bond
The Board gave an undertaking to the court to keep 1 position vacant until the dispute is resolved - that position is still reserved.
The dispute proceeded:
The 1st mediation did not resolve the dispute and "numerous offers were made". Mr Bond wanted the Chapter to appoint him to the Board for 2 years and to pay his costs. The Chapter offered to call an SGM to:
The mediation was not successful and a hearing date was set for 22/11/2009 at the Magistrates Court. The Court subsequently postponed the hearing until May, 2010. It has now been postponed again by the Court. This is not the wish of either Mr Bond or the Chapter. The new hearing date is August 2010.
2010 dispute:
Mr Bond nominated again for the 2010 Board. A different NC was convened with different membership and following the nomination process which had been aligned with the PMI Board model. Again this NC did not recommend Mr Bond. Mr Bond filed another dispute.
The Chapter offered to mediate; Mr Bond agreed and offered to mediate on both disputes. The mediation was held on 15/3/2010 and was unsuccessful.
Potential 3rd dispute
24/2/2010, the Chapter received a letter from the lawyer acting for Graeme Bond threatening to lodge a third claim.
On Monday 29/3/2010 the Chapter was served with a new complaint issued in the Melbourne Magistrates Court by Graeme Bond against the chapter. In the complaint Mr Bond is making numerous allegations and claims and is asking the Court to make various orders and declarations including:
- a declaration that the Nominating Committee should have accepted and recommended him as a candidate for election to the Board
- a declaration that the Chapter has engaged in oppressive conduct in relation to him and to the members as a whole
- an order that the Chapter amend its Rules to provide for a fair and democratic nomination and election process.
The Chapter will file its defence to the complaint within 21 days as required by law.
This most recent complaint and the associated legal advice was the reason that the SGM was postponed tonight. The Board intends to hold the SGM before the next regular meeting in April.
The cost of the dispute continues to rise: it is estimated to now be well over $100k. However, the insurers have agreed to reimburse our 2009 expenditure and agreed to receive the invoices for 2010 directly from the Australian legal team. I will report to the membership further information as it becomes available.
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