Alliance Update 2019 – MV
The idea if an alliance was first suggested about 4 years ago, everyone working together for the good of motorcycling, great idea and MV fully supported that idea and still does.
Numerous versions over the years have been presented creating much discussion at times, yes MV has been a party to this discussion.
When the final version was presented to the SCBs MV sought independent legal advice and it came back with some concerns, these concerns were forwarded to the other SCBs and MA, it was not considered.
Mid 2018 all other parties signed the alliance, it was agreed for representatives of the alliance and the whole MV board meet to discuss the concerns. To show a genuine intent MV narrowed the concerns into 5 major points (attached as a separate document to this letter). At the meeting MV was told that there would be no change to the alliance agreement and that MV had to sign the agreement. There was a stale mate.
Since then the MV board delivered to the Alliance a signed copy of a Marked Up version of the alliance containing changes to accommodate the 5 key points. This document was rejected.
A second meeting between representatives of MA and the Alliance and MV met 2 weeks ago. This meeting was a positive preliminary step towards a resolution of the stale mate. MV is presently awaiting feedback and it is likely there will be further meetings and negotiations. MV will keep you updated as to progress.
Since the later part of 2018 MV has been excluded from important meetings and decision making relating to the sport (MV continues to contribute financially).
Motorcycling Victoria is committed to ensuring that the activities, interests and assets of our clubs and riders are fully protected (including Broadford) and is working hard to achieve the best possible outcome for its members in these circumstances.
- Main areas of concern with the MA Alliance Agreement (AA) as presently drafted
1.1 The five main areas of concern include the following:
- The AA needs an exit mechanism for all Participants I they determine it not in the interests of their members (or creditors) to remain in the Alliance;
- The AA needs to have an overriding ability (in clear and unambiguous terms) for the Participants to act in the interests of their corporations and members so as to avoid any doubt or conflict between duties of directors and boards to their members (or creditors as the case may be) and obligations under the AA;
- The requirements that Participants irrevocably contribute their intellectual property needs to be removed. Perhaps a licence to use the IP while part of the AA;
- Need to remove the power of the ALT to require Participants to remove boards or board members, to dismiss or engage employees and the power granted to the ALT to appoint receivers and to take any other steps it so determines;
- A workable dispute resolution mechanism must be inserted into the AA in order to protect the Alliance and ensure its ongoing viability.
If you would like more information or to discuss this further please contact us on (03) 5784 2827 or email@example.com