Crown director John Poynton resigns on back of independence concerns
The last of James Packer’s direct representatives on the Crown Resorts board has resigned from the casino operator with John Poynton leaving both Crown and its Perth subsidiary with immediate effect after the NSW casino regulator raised independence concerns.
It adds to the sweeping changes at Crown after a damning report found it is unfit to run its new $2.2 billion Sydney casino,
Crown director John Poynton has resigned.Credit:AAP
Mr Poynton had terminated his arrangements with Mr Packer’s private company Consolidated Press Holdings (CPH) and had attempted to stay on the Crown board as an independent director, but Crown announced his resignation on Monday morning.
“The Independent Liquor and Gaming Authority (ILGA) has advised Crown that it considers it appropriate that John step down as a director of all companies within the Crown group, due to a perceived lack of independence arising out of his past relationship with Mr James Packer and CPH, notwithstanding the recent termination of John’s consultancy arrangement with CPH,” Crown executive chairman Helen Coonan said in a statement to the ASX.
“As a result, John has agreed to resign in the best interests of Crown and our shareholders, despite no adverse findings by the Commissioner in the ILGA Inquiry in relation to his suitability, integrity or performance.”
Mr Packer’s other board nominees, Michael Johnston and Guy Jalland, resigned last month but Mr Poynton attempted to retain his board seat.
At the time the other CPH nominees resigned Mr Poynton announced he would no longer represent Mr Packer and CPH said this gives Crown “clear air” to work on its reform agenda.
Former Supreme Court judge Patricia Bergin found in her report that Mr Packer’s influence has had “disastrous consequences for the company”.
In addition to Mr Packer’s board nominees, high-profile directors Andrew Demetriou and Harold Mitchell resigned from Crown last month with Mr Demetriou being heavily criticised in Commissioner Bergin’s report. Crown CEO Ken Barton also resigned last month after coming in for heavy criticism from the report.
“John has been a member of the Board of Crown since November 2018 and a director of Crown Perth since 2004. During that time, he has been enormously committed as a director, Chairman of Crown Perth and through his service on Board committees,” said Ms Coonan.
Crown’s future as the operator of its giant Melbourne casino has been thrown into doubt after the state government announced an unprecedented inquiry into whether the company had broken the law and was suitable to hold a gaming licence in Victoria.
The $5 million royal commission, to be run by former Federal Court judge Ray Finkelstein and due to report on August 1, will also be required to say whether any Victorian law should be changed after the company’s links with organised crime and money laundering were revealed in reports in The Age and The Sydney Morning Herald, and a scathing NSW inquiry.
More to come
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Colin Kruger is a business reporter. He joined the Sydney Morning Herald in 1999 as its technology editor. Other roles have included the Herald's deputy business editor and online business editor.