James Baillieu

James Baillieu is an Australian lawyer born in 1968 in Australia and practised in commercial law.

James Baillieu
Born1968 (age 52–53)
NationalityAustralia
OccupationLawyer
Parent(s)Ian Baillieu, Marianne
RelativesTed Baillieu,

Kate Baillieu,

William Baillieu
FamilyBaillieu

Family and education

Baillieu was born in 1968 to parents Ian Baillieu, an Australian lawyer, and the art gallery owner Marianne.[1] He is the nephew of former Premier Ted Baillieu and journalist, activist Kate Baillieu and also Olympian Will Baillieu.[2] His grandparents are Diana and Darren Baillieu.[3] His great-uncle was WL Baillieu. His great-great-grandfather was James George Baillieu who swam the Port Phillip Bay Rip and landed in Queenscliff, Victoria in 1853.[4] The Baillieu family office Mutual Trust merged with the Myer family office in 2018 creating a firm with more than $3b under management.[5] His cousin Eleanor Baillieu, was a Finalist in Miss Universe.[6] He is related to the Myer family including Sidney ('Bails') Myer AC and his son Rupert Myer AO and Marigold Myer AC.[7] He is married to Josephine, together they hold an annual fundraiser party for the World Wildlife Foundation at their Mornington Peninsula home.[8] His son Atlas was the national Australian Junior Chess Champion.[9]

Baillieu is described by the Australian Financial Review as a "the Baillieu scion" and also "seriously combative".[10][11] Baillieu was described by The Age as "the Baillieu family's chief spear thrower" with "an open approach to conflict".[12]

In December 2011, Baillieu and his wife Josephine hosted Mary, Crown Princess of Denmark and Frederik, Crown Prince of Denmark as guests for a week in a secret visit to their Mornington Peninsula home.[13]

Baillieu was educated at Melbourne Grammar School and graduated from the University of Melbourne where he received a BA and LLB (with First Class Honours).[14]

Career

Baillieu practiced law at Mallesons Stephen Jacques in the 1990s then joined management consultants McKinsey & Co for seven years until 2001.[14][15] He co-authoured a report recommending the dismantling of the New Zealand Wool Board in 2001.[16] He later became an investor in and consultant to early stage technology businesses, and later an investor in and Senior Vice President of Aconex (ASX: ACX) which was purchased by Oracle for A$1.6B on In December 2016.[17][18]

From November 2017 to February 2019 he was Chairman of BidEnergy Limited and also its largest shareholder.[19] The Australian Financial Review reported that when Baillieu became Chairman the company was "foundering" but after he made drastic changes Baillieu said "he kept saying to staff and directors that we were finally pointing in the right direction".[20] Under Baillieu, BidEnergy was the top performing stock on the ASX in 2018.[21]

James Baillieu joined the Board of ASX listed Candy Club. But less than a week later resigned, saying that "he could not sit on the same Board as BidEnergy Board adviser Zac Rosenberg.[22][23] The Age reported that after Baillieu wrote to all shareholders, Candy Cub was forced to issue a new ASX release clarifying Baillieu’s reasons for leaving the Board were not “personal reasons” and in fact due to a breakdown in relationship with co-director Zac Rosenberg.[24]

On 15 September it was reported that Baillieu became Chairman of Candy Club and made an investment of $3 million.[25] Candy Club was the best performing stock on the ASX that day - up 74% on the news of Baillieu's appointment.[26][27]

Baillieu uses Herbert Smith Freehills as his legal advisors of choice and below are some of his legal matters.[28][29]

Poppy King 1998

Baillieu was hired by Poppy King to be her "Mr Fixit" in her battle with her business partners. The Age reported that at one stage they applied for intervention orders, but then withdrew them.[30]

Aconex 2007

Baillieu was involved in a dispute over a $12 million share purchase that was later settled out of Court. Aconex's CEO Leigh Jasper and Baillieu worked together at McKinsey in the 1990s.[31]

Martin Hosking 2011

Baillieu was involved in a dispute seeking removal of Redbubble CEO Martin Hosking as Chairman of Aconex.[32] At one point, Baillieu threatened to bankrupt Hosking and later Hosking resigned as Chairman of Aconex.[33][34]

Allens Arthur Robinson 2011

Baillieu raised concerns about Aliens Arthur Robinson's conflict of interest in being legal advisers while Michael Robinson sat on the Board. Michael Robinson's profile was removed from the Allens Arthur Robinson website and later reinstated.[35]

IR-exchange 2019

Baillieu said the IRexchange Prospectus was "extraordinarily misleading and deceptive" and sought to recover a $1 million investment by issuing proceedings in the Federal Court. "Their prospectus, in my opinion, could put them all in jail because they've made extraordinarily misleading and deceptive statements," Mr Baillieu said.[36] Baillieu also informed ASIC and following Baillieu's legal claims the company offered to refund investors[37] and ASIC stopped the irexchange Prospectus. Baillieu said a new funder would have to pay off the $17 million of convertible notes "and who would want to do that"?[38] Ultimately irexchange paid him $1.23 million and Baillieu said "This is a huge win for me – they're giving me absolutely everything I wanted."[39] On 23 October irexchange had gone into administration after a syndicate of investors filed a legal action in the NSW Federal Court.[40]

Irexchange was accused of misleading its shareholders in further actions of seven different investors with legal actions similar to Baillieu’s.[41] On 2 December Irexchange went to winding-up leaving shareholders and creditors with nothing.[42]

Misuse of the Baillieu name 2019

Baillieu has attacked the rebrand of stockbroking firm Baillieu Holst, to trade as Baillieu. According to Baillieu, "their rebrand was so dishonest, so unethical and so unlawful that we cannot accept their use of 'Baillieu' at all, they've forfeited it." [28] He further said, "trademarks are no defence to deception, and hence irrelevant. The Baillieu name has a good reputation, earned over 165 years. [Baillieu 1889] are, in my opinion, impostors with a poor reputation," and also "Starting legal proceedings would elevate [Baillieu 1889]. They want their position to be taken seriously, and the legal proceedings would be a way of elevating where they are now to be a worthy opponent, and we don't consider them a worthy opponent," and "These guys really don't get a message easily … [My emails] certainly haven't been threatening to them, or intimidatory. They've been strident, and occasionally colourful," [43]

The Australian Financial Review reported that "it is understood almost a dozen Baillieu family members, including Baillieu, contacted the company alleging the name change was inappropriate and describing the company as "impostors".[44][45] The Baillieu family was reported to be “absolutely furious” about it.[46] After that the Sorrento Sailing Couta Boat Cllub, where the rebrand was launched, removed Baillieu Limited's umbrellas and covered up their sign.[47]

Texta over signage at 360 Collins Street

The Age described Baillieu as "a bandit with a black pen" and said the "corporate lawyer and company director took a novel approach....to press the point" and that "he walked into the foyer of 360 Collins Street and used a black Texta to black out the [Baillieu 1889] name on the building's nameplate." Baillieu said "security made no attempt to stop him, and that he was simply righting what was wrong, which is the misleading use of the family name."  The Australian Financial Review reported that  "the pièce de résistance of this whole affair is undoubtedly Baillieu having last week used black texta to scribble out his family name from the firm's Collins Street placards. Using removable marker, it seems, so you can't technically call it vandalism".[29]

The Sydney Morning Herald described Baillieu as "Full-time rich-lister, part-time vigilante."  and that "Baillieu says security made no attempt to stop him, and that he was simply fighting a crime - the theft of his family name".[48]

Baillieu "made an easy confession that he personally crossed out the word 'Baillieu' from its Collins street offices. In broad daylight and with Baillieu making sure to stay within the bounds of the law by making his defacements only in removable marker."[10]

On 14 June 2019 following a campaign of legal pressure from the 'pugnacious' Baillieu and his lawyers Herbert Smith Freehills urging them to change their name, the stockbrokers agreed to change their name to E.L.&C. Baillieu with effect from 17 June to coincide with their move from 360 Collins Street to 55 Collins Street.[49]

BidEnergy 2019

Baillieu was sacked as Chairman of BidEnergy on 21 February 2019. A text message was sent by BidEnergy MD Guy Maine to Baillieu's wife at 12:08 am that night.[50] The share price fell by 32.8% the day after Baillieu's sacking. On 5 March he raised questions about the new Chairman's credentials and the Australian Securities Exchange began an investigation. He also said, "he will be taking further legal action, alleging BidEnergy's directors' decision to remove him from the chairman role was in breach of their duties under the Corporations Act."[51] Later, The Australian reported on 1 May that Baillieu wrote a letter to all shareholders alleging that the new Chairman Andrew Dyer had made false and misleading claims about his credentials to the Australian Stock Exchange. Baillieu apologized to all shareholders for Mr Dyer's appointment to the Board. The stock fell 11% on news of Baillieu's letter.[52]

Baillieu later sold all of his shares and said that he'd been punched in the back of the head by them and it was all terribly upsetting that they’d a meeting without him and that the MD had sent a text harassing his wife in the middle of the night.[53] Billionaire Alex Waislitz snapped up 5.85% of BidEnergy even as Baillieu wrote a letter to shareholders saying he had been wrongfully ousted in a 'secret scheme.[54]

The Age reported on 19 June that Andrew Dyer, the new BidEnergy Chair who ousted Baillieu, was taking Baillieu to Court to seek an Intervention Order to try to stop Baillieu writing to BidEnergy shareholders about Dyer's leadership.[55]

According to documents filed at the Supreme Court of Victoria on 23 July 2019, Baillieu commenced legal proceedings against BidEnergy in an action used by shareholders to sue directors, known as a derivative action.[56]

The Age reported on 6 August that "Baillieu described BidEnergy MD as "an absolute beginner" at large business to business sales and "he doesn't solicit or listen to or like coaching or feedback".[57]

On 25 August it was reported that Baillieu was claiming that Andrew Dyer was attempting to blackmail him in a "corporate war" over Baillieu's removal as Chairman of BidEnergy. It was also reported that Baillieu had called Dyer "a maggot" in the Melbourne Club.[58]

On 4 September in a court hearing Baillieu's counsel Ian Hill QC accused Dyer of "an abuse of process" and "misleading the courts in an attempt to protect his reputation" ever since Dyer removed Baillieu as BidEnergy Chairnan. The hearing was delayed until January.[59]

It was reported Baillieu was suing to recoup $4.6 million lost on sale of a parcel of shares.[60]

Updater 2019

The Australian Financial Review reported that Baillieu had a $20 million stake "grew suspicious about the raise's progress. He sought a detailed explanation from MD David Greenberg about why its taken so long while foreshadowing the commencement of legal action to give him access to the company's books if he wasn't satisfied."[61] Later he said “My very strong suspicion is the capital raise is well off track ... and then I’ve turned up acting a little bit assertive and they’ve just had a light bulb go off and have thought, ‘holy smoke, we’ve got to deliver this bad news. Let’s deliver bad news that it is his fault. It’s insane.”[62] And he further said he had a "constructive and amicable" discussion with Updater CEO David Greenberg and "I can confirm that there was absolutely no suggestion by him that I have done anything to disrupt the capital raising."[63][64]

Baillieu, described the delisting as a "fizzer". “Would I prefer the delisting had never happened? Absolutely. We’ve lost liquidity for an indefinite period of time. The two key criteria for delisting – the valuation and timing for a deal – have both been missed, unless something amazing turns up,” he told *AFR Weekend*. Mr Baillieu said following the investor phone call on Friday, he told chief executive David Greenberg he will not be signing the proposed confidentiality agreement. “I may be left with no alternative but exercise of my Delaware shareholder rights.”[65]

Updater said on 9 November that it had reduced operating costs and had decided that a really large scale growth round was too “risky” but was hoping for a deal by the end of the year.[66]

On 19 December a debt funding deal valuing the business at $1.1 billion was announced.[67][68] It was also reported that Baillieu had sold his stake in the company.[69]


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