Welsh Rugby Union forced into EGM by member clubs

CARDIFF, WALES - NOVEMBER 06: Gareth Davies of Wales Rugby Union addresses the audience during the European Rugby Heineken Champions Cup and Challenge Cup 2019/2020 season launch for Gallagher Premiership and Pro14 clubs on November 6, 2019 in Cardiff, United Kingdom. (Photo by Huw Fairclough/Getty Images)

The Welsh Rugby Union has been forced into an EGM amid notices from 34 clubs that state the need to review how the clubs receive funding, those favouring the ‘old audit’ system above the ‘new audit.’

Clubs call for EGM

The Welsh Rugby Union has today confirmed receipt of a requisition from 34 member clubs to hold an Extraordinary General Meeting under Article 30 of the WRU’s articles of association.
The proposal is that a vote is held on the ‘New Audit’ – the method through which member clubs receive direct funding for their activities. 
This doesn’t effect how much the clubs will get as that is pencilled in under the structure system, but it does mean that how they receive that cash will be reviewed.
The official action taken by clubs reads as follows;
‘To rescind the decision of the Community Game Board (Dated 17/12/2019), wherein they resolved to implement a new funding model “New Audit” to replace the previous season’s “Old Audit” and to reinstate the “Old Audit” forthwith. And that the final instalment of the WRU development grant is calculated and paid in accordance with the “Old Audit” and not by any reference to the “New Audit”.’
This requisition triggers a 21-day period during which an EGM will be called, with further details expected next week.
Welsh Rugby Union Chairman Gareth Davies said;
”Recent governance changes have resulted in a streamlined Board and the creation of a Community sub-board, tasked with representing the views and the best interests of the community game in Wales.

“Across sport, governing bodies are under increasing financial pressure and we additionally took the
step of ‘ring-fencing’ funding for the community game, guaranteeing a minimum level of investment. We are, fundamentally, a union of clubs.

“Whilst the timing of the EGM notice, during the Six Nations, is unfortunate it is equally disappointing that an operational matter – in this case the mechanism through which member clubs are directly funded – a matter which should be dealt with through the structures and processes already in place, has led to an EGM.

“That said, now the EGM has been triggered, we do welcome the opportunity to further debate these important issues with our members.”

 

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