ARU embraces historic constitutional reform

The Australian Rugby Union has taken the historic step of embracing constitutional reform at today's Half Yearly Meeting in Sydney, including the introduction of two Board appointed directors.

The structure of the Board and other constitutional reforms will take effect at next year's Annual General Meeting to be held in April. 

ARU Chairman Dilip Kumar says Rugby's maturity as a professional sport has been reflected in the willingness of the majority Member Unions to embrace much needed constitutional reform.

"There's no question that this has been the missing chapter in Rugby's success story. The game became professional ten years ago, the Australian Rugby Union corporatised at that time. Now we have taken the next significant and necessary step for the game's future." Mr Kumar said.

"This kind of reform can only occur if a genuine vision for the game is put ahead of sectional interest.

"While I respect the views of Queensland delegates who opposed these reforms, after ten years of talk, today's decision was about leadership and good governance. The structures of the past are not appropriate for our modern game.

"We will move very quickly to select candidates with specific, identified expertise in areas we judge to be important. These candidates will add to the talent and experience we already possess in our Board in the form of directors drawn from our Rugby community.

The other significant change to the ARU Constitution requires directors who are elected or appointed to the ARU Board to step down as Directors of Member Unions and Affiliate Unions or Directors of Members or affiliates of those Unions (e.g. clubs).

"This provision totally removes the possibility of conflict of interest. It is a sensible and appropriate provision that goes to the heart of good corporate governance. " Mr Kumar said.

ARU Managing Director Gary Flowers says the ARU Board will appoint a Board Nominations Committee to make recommendations to the Board regarding the two Board appointed Directors.

"We will be looking for an executive search firm to identify candidates based on a role description and selection criteria established by the Board. There will be an interview and evaluation process and ultimately a short list will be presented by the Committee to the Board which will make the appointments."

The meeting also approved the appointment of NSW Country Rugby as an Affiliate Union to the Australian Rugby Union.

Constitutional Changes in Summary.

Board Structure

The Board to be made up as follows:

·        5 Members elected by the Member Unions after being nominated by a Member Union

·        1 Managing Director

·        1 Nominated by the Rugby Union Players Association

·        2 Members appointed by the Board (i.e. 5 Elected Members plus the Managing Director and the Player Nominated Director)

The 5 Members Elected must include two people nominated by the New South Wales Rugby Union, two people nominated by the Queensland Rugby Union and one person nominated by the other Member Unions.

Board Nominated Directors

A Board Nominations Committee will be established to recommend to the Board the appointment of the 2 Board Appointed positions. All members of the Committee will be Board members of the ARU.

The Nominations Committee appoints an executive search firm and after the Committee draws up a role description and key selection criteria (approved by the Board), the search firm:

·        Identifies a long list of candidates through research, nominations from invited parties and advertising (if appropriate)

·        Conducts interviews, evaluates candidates and presents a short list to the Committee

The Nominations Committee conducts its own evaluations and interviews and makes a recommendation to the Board.

After meeting candidates where necessary, the Board makes its decision and offers the appointment(s).

Term of Directors

Each of the five elected directors will be elected for a term of 3 years at the conclusion of which he/she can be renominated for another term as long as the total period as a Director is no greater than nine years at which time the Director will retire permanently.

Each of the two Board appointed Directors will be appointed for a period of 2 years at the conclusion of which he/she can be renominated for another term as long as the total period as a Director is no greater than 6 years at such time the director will retire permanently.

Non Alignment of Directors

Once elected or appointed to the Board of the ARU, the Director must step down as a Director of the following associated bodies:

·        A Member Union

·        An Affiliate Union

·        A Member or Affiliate of a Member Union

·        A Member of Affiliate of an Affiliated Union

Once elected or appointed to the Board of the ARU, any affected person must step down form the other directorship within three months of election or appointment to the ARU.  In the case of a Chairman of an associated body this term is extended to six months.

President and Vice President

A President or Vice President of the ARU must not be a Director of

·        The ARU

·        A Member Union

·        An Affiliate Union