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Coordinators Bulletin 2021 07 No. 1

Coordinators Bulletin 07 No. 1

Notice of Meeting from the DAA Board and Advisory Panel
How the Board came to propose the motion to wind-up

As we have explained previously, the Board and Advisory panel agree that, based on the evidence and despite our collective best efforts, DAA has not been sustainable for a long period of time. The reasons include:

  • For many of the past years there has been a low level of support from most DAA Groups for sustaining the work of DAA nationally;
  • DAA is financially unsustainable. The details of the range of initiatives the Board has undertaken have been reported.  It was only through the sale of the Darwin property and the Jobkeeper payments in 2020 that we have kept afloat. Basically, we do not bring in enough income to cover our minimal expenses.  Dipping into a reserve account goes against all best practice and in fact, it exposes DAA to an insolvency position.
  • The previous board raised these concerns with members back in 2007.
Outcome of motion to wind-up

On 24 June 2021 the motion to wind-up DAA was not passed – 19 of our 28 groups voted in favor of the motion and 9 voted against. Although the majority of DAA Groups supported the motion put to members, ASIC requires 75% (or 21 votes) in favour of the special resolution.

On the plus side, most DAA Groups are successfully paddling and supporting members and are vibrant and sustainable groups.  We are confident that DAA Groups will continue their good work.

The Board’s next steps

As indicated at the 24 June meeting, as the vote to wind-up was not passed, the current Board and Advisory panel members will be stepping down.

Our next steps are to conduct a Coordinators’ Zoom Information Session on 22 July 2021, 7:30pm to provide you with further information and guidance, as well as an opportunity to ask questions. The meeting will cover:

  1. Information about the duties and responsibilities of a Board member.
    Guest speaker Aaron Torline – Partner, Slaven Torline Insolvency and Restructuring 
  2. What DAA’s ongoing relationship with AusDBF will look like
    Guest speaker, John Holland – Chair AusDBF
  3. The strategy for ‘Keeping DAA going’
    Presented by a representative of those members who voted no to the special resolution.

As in previous Zoom meetings, to keep the session manageable, this session is for Coordinators. However, other DAA members may listen in with you. The meeting will be summarized and key points distributed to all members afterwards.  Zoom invite will be emailed separately.

Nominations for Board member positions

Nominations for Board member positions will be called from financial members. In line with DAA’s Constitution, there will be a process for identifying suitable appointments to the Board leading up to the Annual General Meeting later this year.  Further details will be provided in late July to assist those wishing to apply.
Following the vote to ‘not wind-up’ members have raised concerns about what will happen in the future. 

Your Next Steps
We ask that you:

  • Let your members know that this information session is occurring.
  • The Board calls for a representative(s) of members who are willing to keep DAA going to come forward and liaise with the Board by 11 July in preparation of the information session.   Please email us at [email protected]
  • Encourage your members to send questions to [email protected] prior to the session, so that our Guest speakers can respond during the session.

We understand that there is some uncertainty among members on ‘where to from here’. We are working hard to navigate the best way forward, to provide members with information and to respond to your questions.  

The Board and Advisory Panel
Dragons Abreast Australia Ltd.
02 July 2021