Living on the edge: co-op fights for 'logical' solution
The future of the financial planning co-operative Consolidated Finan-cial Services (CFS) is "on a knife-edge", chairman David Craig has told Money Management.
The future of the financial planning co-operative Consolidated Finan-cial Services (CFS) is "on a knife-edge", chairman David Craig has told Money Management.
Discussions between the 22 dealer groups and the ordinary sharehold-ers Craig and Ken Russell over issues including board representation and voting rights having been underway since a meeting of all the parties failed last month.
Craig says the matter of the voting rights has been addressed and says the other issues will be resolved "one way or the other" within the next couple of weeks.
The dealer groups are being lead by Australian Private Capital prin-cipal Michael Tratt. He declined to comment when approached by Money Management explaining negotiations were at a delicate stage.
The dealer groups have been without representation on the board since James Doogue resigned in protest and Kevin Bailey was dumped by the ordinary shareholders.
Money Management understands the dealer groups want a board compris-ing of three directors representing dealers and three for the ordi-nary shareholders. An independent chairman would be appointed.
Bailey admits he has been disappointed with what has happened, but says all the dealer groups are united in seeking a solution
"I am frustrated by the fact that the co-operative has enormous po-tential and that the dealer groups are united in working together for a solution," he says.
Craig says his objective is to resolve the matters raised by the dealer groups, and hopes that "logic will win the day".
"If all issues are resolved, it is all-systems-go for CFS," he says. "If it is not resolved, 'what next' is an interesting question."
Bailey was quite emphatic about a breakdown in talks. "Without finan-cial planners, CFS has no future, but I think we will end up with a compromise," he says.
Craig says there is "a real endeavour to find a solution and a result which is reasonable to everybody".
Money Management understands that if the CFS talks fail, the dealer groups would seriously look at starting a similar venture again. But as all of the 22 groups have contributed financially to CFS, they are reluctant to walk away from their invest-ment in the co-operative at this stage.
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