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French spells out the way forward for BHETA merger

Published: 19 January 2010
BHETA chief executive David French believes there is a way to resolve the structural difficulty impeding the association's proposed merger with the British Jewellery Giftware and Finishing Federation (BJGFF).
Speaking to diyweek.net on January 18, Mr French revealed he has proposed to the BJGFF board that BHETA should forego its share-out from the BJGFF's central pot - providing the BHETA joining fee is ring-fenced.

This refers to the fact that BJGFF is owned by its members, and its Articles of Association state that in the event of the federation being wound up, its assets would be distributed equally among its members. Mr French's proposal is that BHETA members would give up their right to this in return for the guarantee that BHETA's joining fee - currently estimated at £1.2m - would be ring-fenced, and would be returned should BHETA subsequently decide to leave the federation.

"The BHETA position is that we're joining the federation, not the other trade associations within the federation," he said. "Our lawyers say that it's possible to change the BJGFF Articles to accommodate BHETA, and I'm due to meet David Metcalf [BJGFF president] again on January 29. In principle, BJGFF is willing to amend Article 12. So far so good - it's the start of the process, not the end of it, and there's a lot more work to do before we have a proposal that members can vote on."

Asked about the suggestion of mortgaging Brooke House [BHETA's former office in Northampton] to raise the joining fee, Mr French said: "Mortgaging Brooke House is not something I would like to do." But he added that he is confident that the value of BHETA's investment portfolio will grow to the level required to pay the joining fee by the time that the fee falls due.

He expressed satisfaction with the BHETA members' meeting on January 14. "I felt the meeting went very well," he said. "I was very pleased with the way the presentation went, and more than pleased with the attendance." Asked about the suggestion of a further members meeting during the Spring Fair, he said: "There's a will as far as we are concerned - we would like to have room from mid-day to 3pm on the Tuesday, so members can come along and ask questions." The Spring Fair organisers have been approached to find a suitable room at the NEC. And would the proposed further EGM at the end of March go ahead as well? "I believe it should," Mr French said.

However, he is scheduled to step down as CEO at the 2010 AGM, and there are no plans to replace him - so who will be responsible for managing the merger process to a conclusion? "I hope that by the AGM the process is all but complete," he said. "There could be an arrangement with AN Other to complete the process. But BHETA is owned by its members, for the benefit of its members, and the members decide. It depends on the EGM - if the members vote no, the board will have to reconsider."

"At the first AGM I addressed as CEO, I said I would do the job for three years, and I have no wish to go beyond the three-year period. I knew the task was going to require some difficult and unpopular decisions. But I said I wouldn't leave the association in a mess, and would work to finish the restructuring. We're in a much better position now than we were then."

Comments

Published prior to March 2014
By Charles Harrison
When I read the above piece I couldn't help but compare David French with Gordon Brown - desperate to cling to power, not admitting any mistakes and trying to suggest we are better off after his period in office. The battle cry is even the same "I got you into this mess so I am the person with the experience to get you out." Well I for one don't buy it and his arrogance in suggesting he will decide when he goes is breathtaking.

BHETA is close to becoming a total shambles and he is responsible. The information given to members before and at the EGM was so wrong on so many issues that it could only have been the result of total incompetence unless you believe there was a deliberate attempt to misinform members. David French was responsible for that fiasco and should have left then - it is of no credit to the board that they have let him cling on after it failed to obtain the necessary support of members at the EGM.

Off course there are ways forward in negotiations with the BJGF but David French is absolutely the wrong person to conduct them. Any negotiations on the future of BHETA should now be in the hands of Will Jones and Peter Stone - well respected in their industries and years of experience in negotiation at the highest level. The board recruited Will and Peter knowing they would have to work together to run the Association without a Chief Executive. Now is the time to give them a brief and let them start. - I have confidence in them.

There is a further similarity with Gordon Brown - David French has a board that has been to the David Miliband school of "How not to show your support". As a housewares member I challenge John Newcomb (Chairman of the Housewares Committee) to nail his colours to the David French mast and use HousewaresLive.net and diyweek.net to explain a) why David French should stay at BHETA a day longer and b) whether he believes this is what the majority of members want. If he doesn't it should be "Au revoir" David by the end of the week.

The ultimate insult was when David French said he was "more than pleased with the attendance" at last weeks meeting and indicated that the next meeting would be during the open hours of Spring Fair. Because the issue was so important and the attendance so low David Grunwerg suggested, and was supported by everybody present, that a further meeting be held after close of business during Spring Fair. I think I know which time would encourage more member participation so it appears the timing is a deliberate ploy to avoid a proper debate..

Yet again HousewaresLive.net and diyweek.net have been shown to be the only credible forums BHETA members have for debate. Please use them - whether you agree or disagree with me - and post your comment.

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