A special meeting of the Council was held in the Council Chamber, 1st Floor, Old Quadrangle on Monday
29 September, 2003 at 5.00 p.m., to consider any response from the Melbourne University Student Union Incorporated to the remediation letter issued by the Acting Vice-Chancellor on 12 September 2003, and to determine what ensuing action should be taken.

Present

Members

The Chancellor, Ms F S Marles (in the Chair)
The Deputy Chancellor (Dr N G Curry)
The Deputy Chancellor (Mr I A Renard)
The Vice-Chancellor (Professor A D Gilbert)
The President of the Academic Board (Professor P B McPhee)
Mr P Allen, Mr T L Anning, Hon Mr Justice Chernov, Mr D A Crawford, Mrs S M Crennan, Mr R C Evans, Judge I Lawson, Ms N Nurmila, Mr D Perkins, Professor F W Rickards and Hon Mr D R White

Others Attending

The Deputy Vice-Chancellor (Research) (Professor F P Larkins)
The Deputy Vice-Chancellor (Students & Staff) (Professor K C Lee Dow)
The Vice-Principal and Academic Registrar (Ms L Martin)
The Vice-Principal and Chief Financial Officer (Mr D Percival)
The Vice-Principal and General Counsel (Mr C Penman)
The Vice-Principal (Property and Buildings) (Dr D Daines)

Mr D Mazzone and Mr M Syme, Corrs Chambers Westgarth
Mr C Wight and Mr R Cockerell, Ernst & Young.

The University Secretary (Mr L N Currie)
Ms C Buckridge

Business

1. Apologies and Leave of Absence (Item A.01)

Apologies were received from Ms Doig, Mr Forwood , Dr Hood and Ms Storelli.

Leave of absence for the October 13 meeting was granted to Justice Chernov, Dr Hood, Ms Storelli and Mr White.

2. Minutes of Deemed Meeting (Item A.1)

The minutes of the meeting of Council meeting 7/03, deemed to have been held on 11 September, when the members of Council voted on a circulated resolution regarding the Melbourne University Student Union Incorporated, were confirmed.

3. Chancellor's Matters (Item A.3)

Nil.

4. Vice-Chancellor's Matters (Item A.4)

Nil.

5. Melbourne University Student Union Incorporated (MUSUI)(Item A.5)

5 .1 Council received a memorandum from the Vice-Chancellor dated 26 September 2003, and attached materials A5.1 to A.510; A.5 A, B and C, and A.5 "MUSUI Response", which had been circulated prior to the meeting.

5.2 Council also received the following materials tabled at the meeting; each item being dated 29 September 2003, except where otherwise indicated below:

• An amended set of recommendations from the Vice-Chancellor;
• A communication from Ellinghaus Weill dated 20 September 2003, regarding settlement of a court action between certain officers of MUSUI;
• A letter dated 25 September 2003 from the President of MUSUI to the Vice-Chancellor, with an attached letter dated 24 September 2003 from Ferrier Hodgson to MUSUI;
• A joint letter signed by 10 persons, offering advice on the basis that they had been elected to various MUSUI offices for 2004;
• A letter from Mr John Osborn, offering advice on the basis that he had been elected to a MUSUI office and as a member of the University Council for 2004;
• A letter from the President of the University of Melbourne Postgraduate Association; and
• A letter of advice from Corrs Chambers Westgarth, attaching a suggested draft letter from the Vice-Chancellor to various MUSUI officers and a letter of commentary on the MUSUI response to the University's preliminary notice.

5.3 In the course of discussion of the suggested draft letter from the Vice-Chancellor to MUSUI officers, it was agreed that its use of the term "permitted purpose" should be clarified by including a reference to the provisions of the Tertiary Education Act.

5.4 Council adopted the following resolutions:-

5.4.1 That the Vice-Chancellor is authorised on behalf of Council to terminate the Funding Agreement for 2003 between the University and MUSUI, and take such action as is contemplated under the letter from the University dated 12 September 2003 sent to MUSUI in the event the University so elects to terminate that agreement.

5.4.2 That the Vice-Chancellor, following consultation with the Chancellor, is authorised on behalf of Council to take such action as is necessary to terminate the Master Agreement dated 20 December 1989 between the University and MUSUI, should the Vice-Chancellor determine that termination of the Master Agreement is in the best interests of the University and its students.

5.4.3 Notwithstanding the termination of the Funding Agreement for 2003 or the Master Agreement dated 20 December 1989, the Vice-Chancellor is authorised to continue disbursing funds for student amenities and services as collected from students and payable in relation to the 2003 academic year, subject MUSUI agreeing to such new terms and conditions as are acceptable to the Vice-Chancellor. Such terms and conditions may include a requirement that MUSUI appoint a suitable and acceptable Independent Controller with suitable powers and reporting and control obligations to the University, and to provide such further services, advice and assistance as may be required in the restructure of the operations of MUSUI.

5.4.4 The Vice-Chancellor is authorised to take such steps as he may be advised is necessary or he considers is appropriate in reporting to the authorities certain matters arising from the review undertaken by Ernst and Young, or in making available all or part of the results of that investigation for purposes which he deems to be appropriate and legitimate in the circumstances.

5.5 In discussion of the resolution set out at 5.5.4 above, it was noted that the University had no current legal obligation to report to the authorities any of the matters arising from the Ernst and Young review. Some members put the view that the University could not afford to be seen to be withholding information from the authorities, but it was also noted that the University should never lightly refer suspicions about the behaviour of students without reasonably clear substantiation of illegal acts. The Vice-Chancellor assured Council that he would not withhold clear evidence suggesting that offences may have been committed.

5.6 The Vice-Chancellor indicated that the negotiations concerning future arrangements for the management of commercial and student operations of MUSUI would involve wide consultation and that he would seek to involve the Deputy Vice-Chancellor (Academic) and Mr Perkins, if available.

5.7 Council agreed to record its gratitude to Corrs Chambers Westgarth and Ernst & Young for their assistance to the University in these matters.

There being no further business, the meeting closed.