Earlier this week, BizNews published an article by FMF member Mike Hull in which he claimed the Free Market Foundation (FMF) is at a “damaging, potentially fatal, philosophical and management crossroad”. Hull’s article put forth that the FMF is facing a crisis, which has become the subject of a High Court challenge “against the legitimacy of rival claimants to the board”. In response to Hull’s article, BizNews received this response from Gail Day, the chairman of the FMF’s Executive Committee. – Nadya Swart
By Gail Day*
A failed attempt was made at the 2020 AGM to hijack the Free Market Foundation (FMF). Mike Hull, as a single member, has brought a court application against the FMF claiming its board is illegitimate. The central basis of Hull’s argument is that the chairman of the AGM was replaced by a third party when the election of board members took place. This according to him nullified the election results. His allegations have no merit and are factually wrong. In terms of the FMF constitution the FMF’s deputy chairman presided over the voting which resulted in the election of the current board.
Hull lodged his case 13 months after the 2020 AGM. If genuinely concerned, with the support of only 9 other members, he could have requisitioned a Special General Meeting. He did not. This is a clear indication that it is not the AGM or its outcome that has motivated the court action, but some cause, as yet undisclosed by him.
It seems in the light of the failure of his argument on the court papers, Hull wishes now to litigate in public. This is highly irregular. In his statement (The heart and soul of the FMF is under threat, 26 October 2021), Hull raises new issues not covered in his court application.
Hull says “invitations to consult … have gone unanswered”. This incorrect.  A new legal rule requires that when issuing summons, the party issuing the summons must offer mediation. This was not done by Hull. When Hull’s attorney mentioned mediation to the FMF’s attorney, we asked for a written proposal. Hull’s attorney said he would need to consult with his client. We have yet to receive a response. Mediation was not proposed by Hull in a letter threatening to interdict the FMF’s August Special General Meeting at which members voted overwhelmingly in support of proposed amendments to the FMF’s constitution introduced to prevent further attempts at hijacking of AGMs.
There is no “small coalition calling itself a “Camp””.
The FMF had no alternative but to oppose the application as agreed by a majority of the board at a special board meeting convened to decide the matter. Of course responding to the summons has used money and scarce staff resources; it is the inevitable consequence of Hull’s issuing a summons against the FMF.
Hull says “the illegitimate board is pushing ahead with an AGM while the matter is before the high court”. The AGM date was set several months prior to the Hull application. Not only does the FMF’s Constitution require the AGM to be held but so does the legislation that governs Non-Profit Organisations (NPOs). Hull says that “many members will be ineligible to vote”. This is simply untrue. Every FMF member in good standing is entitled to attend the AGM and to vote.
Hull also argues that FMF has become a “closed, elitist, illiberal and politicised club”. Those who read what we write know that we continue to honour our classical liberal values and free market principles. Those who know about our Khaya Lam (My Home) Land Reform Project and our red tape reduction project, for example, know the term “elitist” to be patent nonsense. As one of the foremost classical liberal organisations not only in South Africa, but in the world, the FMF is today more committed than ever to non-racialism, to individual liberty and to economic freedom.
Hull purports to be a friend of the FMF, yet is doing us incalculable harm. We hope that members and funders will continue to remember who we are, what we stand for, and how we have always conducted ourselves.
- Gail Day, Chairman: Executive Committee, Free Market Foundation
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