Radioactive law firm nukes merger

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Wading through the muck of the ASX’s small-cap entrails can be a loathsome task.

, the proposed merger between AF Legal and GTC Legal Group, which runs GoToCourt.com.au, has coincided with a series of bizarre occurrences.from its board, the equally abrupt resignation of former chief financial officer, and the “correction” of his salary as printed in the August annual report, a curiosity which some leaked emails have helped to explain.

Although AF Legal refused to respond to any of our inquiries this week, it told the ASX on Thursday morning that its correction of the “error” in the company’s remuneration report was “in compliance with its legal obligations” and accordingly “much of the information disclosed in the article supports and justifies AF Legal’s reasons for making that disclosure”.

Why would Dennis, EY’s former managing director in Queensland, have agreed to keep Dearlove on in a “consulting role” and as AF Legal’s practice director after he resigned from the board on November 7? Heck, that’s the sort of governance that has won Dennis professional director roles at ASX-listed groups such as fashion platform Cettire or undies manufacturer Step One . Hopefully, his spot on the Queensland Advisory Board of AustralianSuper is less exciting.

The punchline, however, was governance hothouse Energy Resources of Australia, 86 per cent owned by Rio Tinto, announcing Dennis’ appointment to its board as an independent non-executive director on Wednesday.

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