Special General Meeting Result

30 May 2025

To the Members of Retirees WA

On behalf of the Members of the Board (Including the Independent Members) and myself, I would like to thank the Members of Retirees WA for approving the motions put forward to them at our Special General Meeting on 29 May 2025.

The membership has enhanced our efforts to better mould a management structure which meets modern business and regulatory standards. Thank you to all who attended the Special General Meeting.

The Board which we sought for you to allow us to remunerate are responsible for a great deal: At 30 June 2024, our audited accounts show us the extent and size of the organisation which this board is responsible for:

1. $7.7 million in cash, $3.5 million in receivables, $132 million in properties and plant representing two aged care facilities totalling 200 beds and 19 retirement villages with 290 units.

2. At 30 June those assets were valued in the audited financial statements at $143.4 million

3. Indebtedness to our bankers, our aged care residents, the funeral fund and residents of the retirement villages is $119.7 million. This includes RAD balances and amounts that would become due upon residents exiting the retirement villages.

4. At 30 June the amount owing to the Commonwealth Bank was $32 million whilst today that balance has been reduced significantly through the very successful uptake of our new aged care facility at Salter Point which has yielded RAD deposits for over 50 beds and the number of beds in the facility being over 50% sold.

5. Revaluations of our aged care facilities in the last 3 months has shown that the aged care facility at Salter Point has increased in value by nearly $10 million.

6. This increase in value has been brought about by the sale of beds to new residents and this in turn has been made possible by the assiduous and meticulous work of a team of aged care specialists one of whom is a senior officer of this Association.

7. In addition the board and executives of the Association are actively engaged in legal work to defend our organisation against unwarranted and serious attacks by previous executives and their associates; counter-suits by our organisation in our defence and efforts all around to hopefully reach an equitable outcome.

8. In addition the board has overall responsibility to oversee the workings of the Funeral Fund which so far has maintained good standing and financial probity through a revised operating framework and a rejuvenated operating structure.

9. We are in the throes of restructuring the accounting and reporting frameworks of the organisation which also takes its time and required expertise and careful administration.

10. We note that there is likely to be a financial impact of Salter Point coming online, along with expected legal costs (which are likely to be substantial), which we will be taking into account.

Bearing in mind the reality of our organisation – a very large business enterprise with onerous responsibilities to our members, residents of our retirement villages and the residents of our aged care facilities, a business with assets worth today over $150 million and with detailed reporting responsibilities to both state and federal arms of government, it is unrealistic and simplistic in the extreme to expect that we can attract any sort of qualified and sophisticated board members and expect them to be responsible for the overall oversight of such a complex business without any remuneration.

The Board has formed active and working committees with oversight over legal matters, audit matters, the funeral fund and remuneration.

We once again thank you members for approving the motions put forward to you.

We would also like to thank members for voicing their concerns on the day. We are currently in the midst of our due diligence process, and we appreciate your continued engagement as we work through the next steps.

Regards

Henrietta de Sa BA Hons MA
Chief Executive Officer