Why Governance Is So Important

Businesses and sports have constitutions and articles of association not only to protect themselves, but also to protect those in their employ and as well as their board members.

Once these are tampered with to suit the agendas of certain parties, or they are not adhered to and Board members and stake holders as well as the various integrity committees fail to ask questions, then standards start to fall and the organisation finds itself on a very dangerous path.

In Australia we have seen two public enquiries into the boards of Rugby Australia and Hockey Australia and in both instances those charged with overseeing the management of the sport were heavily criticised and accused of not having the knowledge or skills to carry out their roles.

In Football we have witnessed two Board members have the companies that they own or are senior executives with become key sponsors. To most in corporate Governance this is a huge conflict of interest and should not be tolerated, or if it is to be accepted there must be full declaration as to the agreement that was brokered. There should be no hiding behind a “commercial confidentiality agreement,” for this just makes stakeholders even more suspicious.

Of course when things are travelling well there are no problems, but when there is a speedbump in the road, all on board receive a severe jolt.

This is the key moment for any organisation, as you will ultimately be judged on how you handle the situation. Quick incisive communication is the key, however it has to be seen as fair and reasonable.

On Wednesday the 25th of May a ruling was made in the High Court of India which found that the current President of the International Hockey Federation (FIH) Narinder Batra, who is also President of the Indian Olympic Association should not have been appointed a “Life Member” of Hockey India. That this appointment was illegal.

The court found that the sports body had violated the National Sports Code with this appointment and also that of the CEO.

The court document states “The posts of Life President, Life Member in the NSF are illegal so is the post of CEO in the Managing Committee. These posts are struck-down. All such references in the Constitution/Memorandum of Association of R-2 will have to be removed.” R-2 refers to Hockey India.

The court also  ruled that the sport be placed under a Committee of Administrators until such time as appointments can be made that are in accordance with the Sports Code of the Government of India.

The Court stated that “In the absence of a Managing Committee, elected under a constitution strictly in consonance with the Sports Code and the court judgments, the interests of hockey, its development and the sentiments of the hockey-players, aspirants and enthusiasts should not suffer. Therefore, it would be in the public interest that its affairs be put in the hands of a Committee of Administrators („CoA‟) as has been directed by the Supreme Court on 18th May 2022, in the case of another NSF in All India Football Federation vs. Rahul Mehra & Ors (SLP (Civil) Nos. 30748-30749/2017).”

Mr Batra following the findings announced that he would not be running for re-election as President of the Indian Olympic Association. The reason he gave in a message sent to “friends and colleagues” was “At a time when world hockey is going through an essential development phase, with the promotion of Hockey 5’s, the creation of a new competition this year – The FIH Hockey Nations Cup – and the launch of fan-engaging platforms and activities, my role as President of the International Hockey Federation requires more time for all these activities.”

There has been no comment from FIH in relation to the findings in India, which are directly linked to their President who is expected to be thoroughly independent and have no involvement with a national association.

Neither has there been any comment from the International Olympic Committee in relation to the matter. Mr Batra through his position as President of the IOA being a member of the IOC and having held a role as a Member of the Olympic Channel Commission.

The Court found that Mr Batra holding positions as Life Member/office bearer of Hockey India was illegal and went on to say that due to them being illegal these positions “cannot be a stepping stone for any other position or benefit elsewhere, in a national or International body.”

So surely on reading the Court findings the IOC and the FIH should have suspended Mr Batra pending an investigation of their own? Part of that investigation should include the vetting of candidates, as surely this should have been picked up before his election to their bodies? Then again, if due process is not being followed properly and the right checks and balances are not in place, then one can understand how such a situation can occur.

For the FIH there are even bigger issues that come out of the findings of this case on Wednesday.

The court ruled that Hockey India’s “affairs be put in the hands of a Committee of Administrators.”

It went on to state “the CoA shall:

(i) assist in the preparation and adoption of the Constitution of R2 as per the Sports Code and court rulings;

(ii) prepare the electoral roll/college for the purpose of conducting the elections to the Executive Committee in accordance with the provisions of the Constitution, as proposed;

(iii) carry out the day-to-day governance of R-2;

(iv) In discharging its task in terms of (iii) above, the CoA would be at liberty to take the assistance of the erstwhile EC/MC of R-2 which has continued thus far in order to facilitate decisions being taken, inter alia, on the holding of tournaments, selection of players and all other matters necessary for the proper governance of R-2;

(v) The erstwhile Committee shall forthwith hand over the charge to the CoA;

(vi) The CoA would be at liberty to make all appropriate arrangements, for the governance of Hockey India until fresh elections are held in terms of the Sports Code conforming constitution;”

Which would tend to indicate that Hockey India from the minute the ruling was made in the court was no longer constitutional.

So should the Indian team have been allowed to take the field in their crucial game against Indonesia at the Asian Cup? Does the ruling mean that Hockey India is suspended from international competition until such time as the new constitution is in place and new officers appointed? Let us not forget the events that led up to Hockey India’s creation…

Of course this would have a far-reaching impact on the FIH’s tournaments such as the Pro League, the Asian Cup and even the upcoming Lausanne 5’s in which both the Indian men and women are due to take part. What is more the sponsor is an Indian company.

Will the FIH follow its own constitution? Article 10 is headed “RECOGNISED ORGANISATIONS & ADHERENT ORGANISATIONS.” Section 10.1 subsection (v) reads as follows:

“must send detailed reports on each of their activities on at least one (1) occasion per year to the FIH Chief Executive Officer. The Executive Board reserves the right in its entire discretion to withdraw its recognition if the activities of the organisation concerned are not in the opinion of the Executive Board satisfactory.”

The last section “if the activities of the organisation concerned are not in the opinion of the Executive Board satisfactory” now puts the spotlight front and centre on the Executive Board. If they deem that what the court has found to be illegal to be satisfactory, where does that leave the sport as a whole?

The trouble is the Executive Board is full of individuals who still have involvement with National Associations or Confederations, so one can understand if such a move were to be made Mr Batra may well utter the famous phrase, let he who is without sin cast the first stone.

This is why constitutions must be adhered to.

The higher up the governance tree you go, the more transparent you have to be. For all it takes is one piece of mismanagement that goes unchallenged or ignored and the effects can be far greater than anyone imagined.

At this point in time sports fans continue to wait to hear from the FIH and the IOC. What is their stance on the findings in the High Court of Delhi?