The reclusive billionaire is fighting calls to limit his voting power in the casino giant, while outgoing chair Helen Coonan has not ruled out a consulting role.
Reclusive billionaire James Packer is fighting calls to limit his voting power in the casino giant he once chaired, with his lawyers saying his status as Crown Resorts’ biggest shareholder doesn’t mean he has influence over it.
Last year’s NSW Independent Liquor and Gaming Authority inquiry into evidence the gambling giant facilitated money laundering by Asian high-roller “junket” tours at its Perth and Melbourne venues heard he was the driving force to secure more of that market and his influence had been “disastrous”.
Crown admitted he was given privileged information through a controlling shareholder protocol agreement, which was terminated during the inquiry, and counsel assisting went a step further, suggesting Mr Packer’s Consolidated Press Holdings should only be allowed to exercise a voting power of 10 per cent despite having a 37 per cent stake.
In responsive closing submissions to the recently completed Victorian royal commission into the scandal that were released by Crown on Thursday, CPH argued slashing Mr Packer’s interest was not necessary.
“The mere holding of shares, even a large parcel of shares, in a holding company, does not of itself give a person influence over and with respect to the management or operation of the casino business,” CPH lawyers wrote.
“Influence does not arise merely by reason of such a shareholding.
“The removal of any influence with respect to the management or operation of the casino business has been achieved through actions already taken by CPH and Crown Resorts without the need to introduce shareholding restrictions.”
Crown made a similar argument in November to the NSW probe, with its barrister Neil Young saying the company had made necessary improvements in light of the serious problems the inquiry had shone light on, including ongoing board renewal, so the imposition of further measures was not warranted.
Mr Packer stepped down as chairman in 2015, quit the board in 2018 then tried to sell a 19.9 per cent interest in Crown to Hong Kong gambling giant Melco Resorts, an ill-fated transaction that only got halfway through when the NSW inquiry was launched.
Melco ended up last year offloading its 9.99 per cent stake to US private equity giant Blackstone, which had its multi-billion takeover bid for Crown knocked back by the board in May.
A merger bid by rival Star Entertainment was withdrawn last month.
At a separate royal commission in Perth on Thursday, interim chair Helen Coonan was immediately asked if she did not expect to have any further involvement with Crown after she steps down in coming days.
“Not even informally?” counsel assisting Patricia Cahill asked.
“I haven’t turned my mind to it, Ms Cahill, but the events of the past few months have been so intense and have required much of my attention, so that I haven’t yet had an opportunity to consider that,” Ms Coonan said.
“But I certainly don’t intend to have any formal role. Whether there is some informal role in some capacity, I wouldn’t rule that out, but it’s not my current intention.”
Ms Cahill pressed further, asking if there may be a consulting agreement.
“That hasn’t been discussed or raised with me at all,” the former Liberal senator responded.
The board has been gutted in the wake of the damning NSW inquiry findings, with the biggest scalp claimed – chief financial officer-turned chief executive officer Ken Barton – revealing at the Perth investigation this week he only received training on anti-money laundering last year, after 10 years with the company.
A particularly bitter departure was former director John Poynton, who had been a nominee on Crown’s board for Mr Packer and reluctantly resigned in March.
Mr Poynton’s lawyer, Peter Ward, last month told the Perth proceedings his client had been pushed out by both Ms Coonan and the NSW regulator after being “placed under significant pressure … both privately and in media statements”.
Ms Coonan told the ASX the regulator had considered Mr Poynton’s departure appropriate due to his “perceived lack of independence” from Mr Packer.
The billionaire’s two other Crown board nominees, Michael Johnston and Guy Jalland, resigned in February.
Mr Packer’s one-time right-hand man, John Alexander, who was replaced by Ms Coonan as chair in January last year, will testify at the Perth probe next week.
Originally published as James Packer fights call to slash his Crown voting power, Coonan leaves door open to ongoing involvement
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