Proposal to hold an Emergency General Meeting of the Irish Canoe Union
Case in Support of the Motion to hold an EGM
February 15, 2011
Summary
There are growing concerns being expressed by the ICU Membership about a course of action which is being pursued by the ICU Board that resulted in the suspension of the ICU Chief Executive, Michael Scanlon, from his employment and the initiation of investigative and disciplinary proceedings against him because of decisions / actions undertaken by him several years ago.
To date, the legal and other costs associated with the present situation are estimated to be in the region of €45,000. There was a total of €26,000 spent by the Canoe Union on legal issues back in 2008.
Why are such large amounts of very scarce funding being wasted by the Canoe Union on disciplinary issues !!
From what can be established it would appear that the majority of the seven complaints made against the Chief Executive are of a procedural nature and that the financial implications of these decisions / actions undertaken by the CEO have been of a significant net gain to the Canoe Union.
It appears also that the complaints made against the Chief Executive are such that the whole of the current situation could have been dealt with by an internal inquiry lasting no more than 2/3 weeks. The actions undertaken against the Chief Executive implicates the entire ICU Membership in being part of a grave injustice against the Chief Executive which has supposedly been undertaken to protect the interests of the Canoe Union and the ICU Membership.
There has been no communication of any kind about this situation to the wider ICU Membership throughout the past 4 months from those Board Members who are responsible for initiating the investigative and disciplinary procedures against the Chief Executive. The majority of ICU Board Members would also appear to have been kept in the dark to a very large extent about the current situation.
It would appear that this matter has been and continues to be grossly mismanaged by members of the ICU Executive who have acted to a very large extent unilaterally and without recourse to or in consultation with their fellow Board Members and the wider ICU Membership.
This situation must stop now !!!
We are asking you to support a motion to hold an EGM to seek a debate about the actions of the ICU Executive and a call for its immediate resignation.
Reasons for the calling of an Extraordinary General Meeting
The ICU Chief Executive, Michael Scanlon, as a result of complaints made against him by the ICU Company Directors, has now been suspended for over 4 months. In the face of an adversarial approach adopted in dealing with these complaints, the Chief Executive may be forced to seek recourse to litigation in order to ensure that the principles of natural justice and fair procedures are applied in dealing with these complaints.
The present situation looks set to become considerably more protracted with legal costs rising significantly for both parties. There appears to be no imminent resolution in sight unless the ICU Membership takes some control of the situation through the convening of an EGM.
The Canoe Union is on the brink of becoming embroiled in a potentially costly legal process, despite requests by the Chief Executive for mediation or arbitration to resolve any legitimate concerns there may be in relation to decisions / actions undertaken by him.
On balance it would appear that the potential financial, operational and reputational risks to the Canoe Union far outweigh the impact of the Chief Executive’s decisions / actions that gave rise to the complaints made against him. All avenues to bring about a mediated solution should have been exhausted before exposing the Canoe Union to the present unacceptably high levels of risk that are now threating the Canoe Union. The following represent just a small proportion of the risks the Union has now become exposed to:
Financial Risks
Having suspended the Chief Executive on full pay, the Canoe Union has now been paying the Chief Executive’s salary for over 4 months. During this period he could have continued to fulfill some of his duties. However, an offer by the CEO to undertake work away from the ICU Office was refused. This represents a considerable loss to the Canoe Union which the organisation can ill-afford.
The approximate cost to date has been estimated to be in the region of €45,000 and rising. Should the CEO be forced, as is likely, to take out an injunction the legal costs will escalate exponentially. The decision to pursue a highly aggressive course of action against the Chief Executive has already exposed the Canoe Union to unwarranted legal costs that have the potential to become very considerable should a protracted legal case be pursued that results in a legal settlement and/or the awarding of punitive damages.
Operational Risks
Along with the effect on the day-to-day operations of the Canoe Union, the absence of the Chief Executive impacts performance in a number of crucial high-level areas, e.g.
• It would appear that several grants (Administration, High Performance, Capital, and EU Project) could have been placed at risk.
• Morale among Canoe Union staff appears to have been adversely affected due to the absence of the Chief Executive.
• The delivery of services to members and the general public have and will continue to decline. The ICU website has become defunct and has not been updated since last September.
• The making of normal operational decisions appears to have become increasingly protracted and delayed.
Reputational Risks
Over the years the Canoe Union has continued to build on its good reputation and is held in very high regard by the Sports Council, the Olympic Council of Ireland, and the Irish Institute of Sport. As a sporting organisation the ICU has been very successful on a proportionate basis.
Any actions that expose the Canoe Union to reputational risk, including perceptions of governance failures, legal actions and so on is ill-advised particularly in these straitened times. The risk to the Canoe Union’s reputation if it becomes associated with failings to manage its business effectively and efficiently is immense and will take years to overcome and recover from.
What you need to do
Is your ICU Registration up to date ???
• Your Club or Individual Membership must not have expired any longer than 3 months before the date of the EGM in order to be entitled to vote at the EGM.
• Make sure your ICU Membership whether this is through your club or through ICU Individual Membership is in date and if it is out please ensure you register immediately.
Granting of your Proxy Votes to other Clubs or ICU Individual Members;
• It is really important that you attend this EGM. However, should this not be possible and you wish some other club / person to use your vote on your behalf please complete the proxy form that will be sent to you by the ICU Office when it circulates notice of the date of the EGM;
• It would be preferable that you return your proxy form by registered post to the ICU Office;
• If possible please forward a copy of your proxy to club / person to whom you have granted your proxy votes.
Motion
• -The motion calling for the EGM must be signed by both the chairperson and secretary of your club.
• -Please post the enclosed motion form to Rachel Linney Barrolwline Canoe Club, 35 The Glebe, Stradbally Co Laois
The ICU Articles governing the calling of an EGM
• All meetings other than Annual Delegate Meetings shall be called Extraordinary Delegate Meetings.
• The Board shall convene Extraordinary Delegate Meetings:
(i) if a resolution to so call an Extraordinary Delegate Meeting is passed at the preceding Annual Delegate Meeting.
(ii) where ten ICU Registered Clubs so requisition such a meeting by service on the Honorary Secretary of a written notice seeking the holding of such a meeting.
(iii) where two thirds of the Board resolve to convene such an Extraordinary Delegate Meeting.
• A requisition made by ICU Registered Clubs to call an Extraordinary Delegate Meeting must in the form of a motion and be signed by the Chairman and Secretary of each of the ICU Registered Clubs calling the Extraordinary Delegate Meeting and be deposited at the registered office of the Union.
• On receipt of a requisition by the required number of ICU Registered Clubs calling an Extraordinary Delegate Meeting, the Board shall proceed to convene an Extraordinary Delegate Meeting as soon as is practicable. If the Board, however, fails to convene an Extraordinary Delegate Meeting within 60 days from the date of the deposit of the requisition, the requisitionists or a majority of the requisitionists may themselves convene a meeting.
More to come...The ICU Club listed below is seeking the convening of an Emergency General Meeting of the Irish Canoe Union in accordance with the provisions of Articles 21, 22 (ii), 23 and 24 of the ICU Articles of Association.
Motion 1
The ICU Club listed below calls on the ICU Board under the provisions of Articles 21, 22 (ii), 23 and 24 of the ICU Articles of Association to instruct the ICU Honorary Secretary to call an immediate Emergency General Meeting of Irish Canoe Union to debate and vote upon the following motions.
Motion 2
The ICU Club listed below calls on the ICU Board to provide a forum for debate at this EGM to discuss the possible financial, operational and reputational risks to which the Irish Canoe Union may have become exposed as a result of decisions made by the ICU Board.
Motion 3
The ICU Club listed below call for a vote of no confidence in the ICU Executive.
Club:
Chairperson:
Secretary:
Date: