Governance saga nears closure
Provincial unions apply for SGM and are proposing a radical shake-up for NZ Rugby
An end, or at least the prospect of closure, is in sight for New Zealand Rugby’s eight-month governance structure saga, as the provincial unions have applied to hold a special general meeting.
New Zealand Rugby has confirmed to the Herald on Sunday that it has received an application to hold an SGM, which under the rules of the national body’s constitution will take place in six weeks.
Wellington chairman Russell Poole says the intent, at this stage, is for one restructure proposal to be on the ballot when the unions vote in late May, but it will ultimately depend on how the NZR board reacts to receiving the SGM application.
The proposal the unions have lodged is to restructure the NZR board to comprise nine independent directors, one of whom must have lived experience in relation to Te Ao Ma¯ ori in a complex organisational context, one of whom must identify as Pasifika, and for at least three members in total to have had a minimum of two years’ experience serving on a provincial union board.
Additionally, the proposal calls for the incumbent board to stand down, but Poole stressed the unions are keen to see some, or all of them, reapply for positions through the new system that is agreed.
“We are still advocating for members to step down but encouraging them to reapply,” Poole said.
“We believe it’s important they’ve all come through the same process. There are one or two members who don’t want to do that.”
Following a meeting two weeks ago, the two parties remained at loggerheads about key points.
The provincial union working group and NZR board working group met on Thursday to try to thrash out more compromise agreements to try to align their proposals on how to change the way directors are appointed to the board.
Following Thursday’s meeting, the unions agreed to lodge an application for an SGM the next day.
It is understood NZR’s board will meet tomorrow to determine how to respond. Its options are to try to keep working with the unions to persuade them to amend the proposal they have lodged — with Poole confirming the provinces are willing to engage for one more week.
Poole said the unions were willing to make slight amendments and will consider rewording the specific demand for at least three members to have two years’ experience on a provincial board.
He says any change would have to reflect the unions’ desire to have at least three people on the board with hands-on experience or involvement with community rugby.
How this ends up being phrased could be crucial, as NZR chairwoman Dame Patsy Reddy has publicly stated she will resign if the unions don’t drop their demand for three members to specifically have two years’ experience.
She feels such a demand does not significantly shift the make-up of the board towards being fully independent.
“I’ve been clear that I’m committed personally to delivering an independent model of governance for the game,” she has said. “And the [independent governance review] gave us a well-considered blueprint for that.
“I’m hoping the provincial unions will support this way forward, but if the voting members choose to vote a proposal that maintains that level of representation — of three members of the NZ Rugby board having to have government experience at provincial level — yes, that’s my red line.”
Alternatively, the board can seek permission to include its own proposal at the SGM and give the unions a choice about which way to vote.
Reddy released a proposal several weeks ago showing a transitional pathway towards adopting a governance structure which she said was in line with the recommendations made by the independent review panel that came up with the blueprint of how best to manage the game.
It is believed more detail has been put into that proposal — specifically about who will sit on the appointments panel and who will sit on the council that will put forward names to sit on the appointments panel.
Her proposal, however, is still believed to support incumbent board members seeing out their full terms — which means any transition to a fully independent system will take two years.
One other option open to NZR’s board is to call its own SGM — under the terms of the constitution, that can take place within three weeks, rather than six — and try to force through its own proposal.
Any proposal that is taken to a vote will need a two-thirds majority to be passed.