Saru broke company law

SA Rugby has acted “illegally and immorally” by writing up minutes of meetings with the Spears unions before the meetings had actually taken place.

This is according to corporate governance experts contacted by the EP Herald newspaper.

SA Rugby’s managing director Basil Haddad confirmed that he had written up the minutes before the meetings in order to buy a 25.1% shareholding in the three unions, which would have given Saru a 50% shareholding in the Spears, and allowed them to withdraw the franchise from the Super 14.

Professor Kathy Munro, a corporate governance expert at Wits University, told the EP Herald that drawing up minutes before a meeting had taken place was illegal.

“It‘s simply bad practice, it‘s immoral, not to mention that it‘s in contravention of company law,” she said. “Then why have an executive committee in the first place? The person who wrote those minutes is placing the company at risk both legally and financially.”

Thapelo Kgari from the Institute of Directors said even if the minutes had been signed off by the executive committee, the meeting itself could be declared invalid by the Registrar of Companies.