CATA members came together at a Special General Meeting (SGM) held on 4th February 2016 to decide on whether CATA should amalgamate with RISE Network. A number of questions were asked about the options available and how amalgamation may benefit CATA’s participants more so than maintaining the organisations independence. It was clarified that:
· The introduction of the National Disability Insurance Scheme (NDIS) is driving the need to consider change and the welfare of CATA’s participants is central to this process.
· RISE Network is the preferred amalgamation partner selected from a number of other not for profit organisations.
· The key factors for success in delivering NDIS services included organisational marketing, efficiency and volume of business.
· Currently a significant gap exists between the projected unit cost of NDIS delivery by CATA and the unit price that will be received from the NDIS. Resolving this gap with the cash flow security of a large organisation such as RISE removes much uncertainty about the future.
· The decision whether to amalgamate or not needs to be reached after considering the balance of risks and benefits for clients associated with each option.
After consideration of the amalgamation option the SGM unanimously carried the following motion.
‘To proceed with the proposed amalgamation of CATA with RISE Network and close down CATA Group Inc., subject to sufficient and satisfactory due diligence of RISE Network and the successful conclusion of final negotiations.’
From here a number of things need to occur before the amalgamation motion may be fully implemented. These include RISE considering its due diligence of CATA and formally agreeing to amalgamate with CATA. Final negotiations also need to be completed. Following this a business plan and a amalgamation plan both need to be developed and then gradually implemented.
With the welfare of participants in mind, CATA’s members have made a very difficult decision. I ask that you support their decision and work with CATA to develop and consolidate a positive future for all stakeholders.
This months cartoon looks at how difficult it can sometimes be to accurately see into the future.
Graham Hope - CEO