A Federal Court has adjourned a hearing on whether or not the Victorian Farmers Federation is legally obliged to hold an extraordinary general meeting, where motions to spill leadership positions would be presented.
Rupanyup graingrower Andrew Weidemann was one of three former Grains Group presidents, leading the push for an EGM to oust the VFF directors, president Emma Germano and vice-president Danyel Cuccinotta.
Lawyers for the group told Federal Court judge, Justice Jonathon Beach the VFF was legally obliged to hold an EGM, after it was presented with a petition with the 100 signatures required for one to take place.
The group sought the interlocutory injunction, asking the court to issue a "requisition" to compel the VFF to hold the meeting.
An interlocutory injunction is a court order to compel or prevent a party from doing certain things, pending the final determination of the case.
"I am not going to grant you the form of injunction you are seeking, at this stage," Mr Beach said.
Justice Beach requested more information from both parties, adjourning the hearing until Friday, October 20.
Much of the hearing was made up of legal argument around the validity of resolutions calling for the removal of the president and vice president, both from their positions and as directors.
There are four resolutions in the petition, to be put to a future EGM, to remove Ms Germano and Ms Cucinotta and replace them with Paul Weller and western Victorian livestock producer Georgina Gubbins.
The court heard the matters in dispute were the request for an EGM to be held, the removal of the current directors and appointment of Paul Weller and Georgina Gubbins and president and vice-president, respectively.
For Mr Weidemann, Tim Walker KC told the court the predominant issue, at dispute, was the validity of the "requisition" to hold the EGM to remove the current board.
"There was really no explanation as to why the requisition was rejected," Mr Walker said.
The VFF has previously described the second request for an EGM to oust the president and vice-president as "defective."
Justice Beach said the plaintiffs had argued calling the EGM was valid under both Section 249D of the Corporations Act and the VFF's constitution.
On the other hand, the VFF's counsel Hamish Austin, KC, told the court the resolutions could not be put to the members in a general meeting.
"That's a problem that infects the notice of requisition, whether you treat it under 249D or the constitution," Justice Beach said.
He initially said he felt he could make a final judgement, on the issue, but the following legal argument decided on an adjournment.
"If I don't give you your injunction, or declarations of validity, there is nothing further left in the proceedings," he said.
Mr Walker said it was not in contention that 100 members had signed the letter, required under the constitution, calling for an EGM to be called.
The court was told the VFF had 6044 members, of which 215 people had signed the letter calling for the EGM, while the federation argued there were 6036 voting members, and 202 had signed.
Legal argument centred around whether Ms Germano and Ms Cuccinotto should be removed as directors, or as office bearers.
Mr Austin argued the third and fourth resolutions to be put to an EGM - to replace the president and vice-president with Mr Weller and Ms Gubbins "could not be put, in any form.
"A resolution to remove them as president and vice-president cannot be passed by members at a general meeting - no-one can, they have a term that lasts for two years; it's not for life," he said.
"There is no power, vested to remove them.
"What we can't have is the democratic process that exists, that elected them, be subverted by some reading that grants the power to someone else to remove them."
Mr Austin said the only way the president and vice president could be removed would by democratic process.
"That's a very, very different proposition to that which these members signed on for." he said.
"They signed on to a document, which has this as a suite."
Mr Weller and Ms Gubbins needed to be elected, not appointed, he said.
Justice Beach said members might have "gone for the devil I know, rather than the one I don't.
"They might have been fond of the people who are identified in resolution three and four - they might have thought one and two were doing okay, but they would prefer three or four. "
Mr Walker said there would be an election at the EGM.
"It doesn't use those words, but that's the substance and purpose of it," he said.
The matter will come back to court on Friday, October 20.
Andrew Miller
I'm a general reporter with Stock & Land, with a special interest in irrigation issues. I completed my cadetship, with the Age, in 1980. Over my career, I've worked for ABC radio news (Mt Isa, Qld) and at provincial and suburban newspapers.
I'm a general reporter with Stock & Land, with a special interest in irrigation issues. I completed my cadetship, with the Age, in 1980. Over my career, I've worked for ABC radio news (Mt Isa, Qld) and at provincial and suburban newspapers.
