The chairman of Structural Monitoring Systems (SMS), Ross Love, has been removed from his position following a Federal Court ruling concerning allegations of inappropriate workplace behavior. The decision came after a female employee, working at Anodyne Electronic Manufacturing Corp (AEM), a subsidiary of SMS, lodged a complaint in July regarding Love’s conduct while he served as interim CEO of AEM.
The court’s refusal to grant Love an interlocutory injunction to prevent his termination marked a significant turn of events for the company, which is listed on the Australian Securities Exchange and has its headquarters in Perth, with additional offices in Canada and the UK. Following the court’s decision, SMS announced on December 23, 2023, that Love would no longer serve as a director.
The allegations prompted an investigation after the employee’s complaint was brought to the attention of the SMS board. According to court documents, the investigation was conducted independently, and Love was given a summary of the final report in mid-September, although he was denied access to the complete document.
Legal correspondence ensued between Love’s representatives and SMS, culminating in a demand for him to resolve the dispute or risk termination of his service agreement with his other company, Turton House Group. In response, Love initiated legal action against SMS under the Fair Work Act, claiming victimization and adverse action.
In his claim, Love alleged SMS engaged in adverse actions against him by denying access to the full investigation report, excluding him from a September board meeting in the UK, and cancelling his company-issued credit card without prior notice. He also pointed out the board’s failure to present a recommendation for him to receive 1.5 million shares, a proposal previously endorsed by the SMS UK board.
Justice Samuel Vandongen acknowledged the breakdown of trust between Love and the SMS boards, stating, “Mr Love’s relationship with the boards of the SMS respondents has broken down, and that the trust the members of the boards had previously reposed in Mr Love has now evaporated.”
In its official statement, SMS emphasized that the board acted in accordance with its statutory and fiduciary duties throughout the process. They highlighted that Love was notified of the concerns raised against him and was given a fair opportunity to respond prior to the board’s decision to terminate his executive services agreement.
SMS originated from technology that identifies cracks in commercial aircraft airframes but expanded its operations eight years ago with the acquisition of Anodyne Electronics Manufacturing. Love joined SMS in mid-2022 after a distinguished career with Boston Consulting Group, where he advised major companies including Qantas.
The legal battle continues, with a court date yet to be announced to resolve the outstanding issues related to Love’s allegations and SMS’s actions.
