CBA dismisses its managing director

Press, 6 March 1984, Page 26

CBA dismisses its managing director

The directors of CBA Finance Holdings, Ltd, yesterday dismissed the company’s managing director, Mr A. R. Hawkins, at a special board meeting where Mr Hawkins was given the opportunity to comment on matters which led to his suspension a week ago.

The company’s chairman (Mr R. 1 V. Douglass) described the background to these events as follows:—

“The events which have led to Mr Hawkins’s dismissal began in December, when he announced that the Hawkins/Bayldon shareholdings in CBA Finance Holdings were to be sold, and that he would be seeking to be released from his service contract with the company which did not expire until December, 1985. “In addition, under this contract Mr Hawkins also agreed that he would not be involved in any other finance company for a further two years. “In January, Mr Hawkins began discussions with Mr Douglass on a basis for retirement during which he disclosed his intention to form Equiticorp, which would be a substantial competitor of CBA Finance, and the proposal for Equiticorp to employ up to 15 members of the CBA .Finance staff. During these discussions the Hawkins/Bayldon shareholding in CBA Finance was

finally sold. “The discussions with Mr Hawkins also included the possibility of Equiticorp’s purchasing Westpac’s shareholding in CBA Finance resulting in Mr Hawkins, on behalf of Equiticorp, submitting an offer to Westpac. This offer was rejected on February - 3, as Westpac reaffirmed its full commitment to CBA Finance and its future development. “On the day before the CBA Finance board meeting of February 24, the chairman, to his surprise, was informed by Mr Hawkins that Equiticorp would be proceeding and alleged that this was beyond his control. The chairman was also informed that Mr Gillespie, the general manager, administration, and three other staff members had already resigned to join Equiticorp and that there would be others. A further four staff members resigned to join Equiticorp on the day of the board meeting. “In view of the foregoing events, the board suspended Mr Hawkins to ‘Sllow further investigation of the facts. This investigation and subsequent information concerning Equiticorp clearly demonstrated Mr Hawkins’s involvement with Equiticorp, to the detriment of CBA Finance, and the resignation of CBA Finance staff to join that company. The board views Mr Hawkins’

conduct as a most serious breach of his duties as managing director. There was no alternative but to dismiss him.”

Injunctions have already been obtained against Mr Hawkins, Equiticorp, and Mr Gillespie, restraining them from having any involvement with one another.