It was a horror week for the powerful Millner family as court cases in Sydney and Brisbane raised doubts about the merits of a corporate governance model founded on private school connections, blood relations and networks built on old money.
The separate legal actions, which involve key companies in the Millner family empire, put the spotlight on Robert Millner, his son Tom Millner, Robert's cousin Michael Millner and Robert's brother-in-law David Wills.
Also, there were occasional references to Robert Millner's deceased uncle Jim Millner, who 48 years ago created a cross shareholding structure that preserves the power of the Millner family across a range of public companies.
The combined value of companies overseen or connected to the Millner family is $15.8 billion. These companies include Brickworks, Washington H. Soul Pattinson, Milton Corp, TPG and New Hope Corporation.
Having fingers in so many corporate pies means the family has enormous power and influence in financial circles. Every broker wants their business and few in the market are willing to criticise them because of fear of litigation.
This week in Brisbane, a member of the Land Court, Paul Smith, handed down a scathing 459 page determination against New Hope subsidiary New Acland Mine. New Hope is chaired by Robert Millner and controlled by Brickworks.
Smith rejected an expansion application for the New Acland coal mine on the Darling Downs.
In doing so he peeled back the layers on an arrogant and bullying corporate culture. The New Acland Mine was not afraid to use everything in its power to destroy a local town.
Rather than engage with local residents the company bought up houses in Acland and destroyed them. This left Glenn Beutel, who opposed the mine, owning the house he lives in and the one next door he rents out.
Smith said the actions of New Hope contributed to the angst between the company and opponents of the mine.
Smith said the New Acland Mine appeared to have downplayed its part in the destruction of Acland.
"As noted by Mr Beutel, it could have rented the properties it acquired and kept the town alive. By removing most of the buildings in the town it has in all likelihood killed off any chance of the town of Acland surviving.
"In terms of community and social impacts they have been significant particularly for Mr Beutel, and one wonders whether the removal of the buildings in Acland has been a deliberate ploy by NAC to pressure him to leave.
"NAC may have acted within the letter of the law by their purchase and removal of Acland buildings, but as an example of engagement with the community, NAC has acted quite intentionally like a bull in a china shop."
Smith dismissed the mining company's accusation that objectors to the mine were "bigoted individuals". Smith, who grew up in Ipswich and visited an underground coal mine while at primary school, said the objectors were "honest hardworking regular folk".
He said NAC had a "tendency to treat anyone who disagrees with it in a dismissive and disrespectful manner".
In Sydney on Thursday and Friday, three leading barristers - Tony Bannon, Noel Hutley and Ian Jackman - summed up in a case brought by fund manager Perpetual against Brickworks and Soul Patts claiming oppression of minority shareholders.
Robert Millner is the chairman of Brickworks and Soul Patts.
The evidence in the case over the past two weeks has raised questions about the standard of corporate governance including the willingness to inject fresh blood into the boardrooms of companies in the Millner empire.
Since 2011 Perpetual has been calling for improved governance at Soul Patts and Brickworks and the end to the cross shareholdings between the two companies. It is claimed the dissolving of the cross links would unlock $454 million.
In its defence, Soul Patts, said the family ties shared by three Soul Patts directors were irrelevant.
"The fact that there is a family relationship between Robert Millner, Thomas Millner and David Wills is irrelevant," the defence said. Brickworks separately described the allegations of Millner family control as "misplaced paranoia".
But Bannon, on behalf of Perpetual said the directors of Soul Patts must have been "chortling and guffawing" at their Newington old boys meeting about keeping Perpetual at bay in 2012.
The court heard that tax advice from PwC, which supported Perpetual's case, was kept from the fund manager at the request of a corporate adviser to Brickworks.
Perpetual failed to have an independent director, Robert Fraser, appointed to the board of Soul Patts in 2011.
Hutley argued that Perpetual was simply trying to barge its way into the Soul Patts boardroom. He said there was no proof minority shareholders were being oppressed.
But Bannon for Perpetual put a persuasive case that the Millner family was indifferent to external shareholders
The federal court's Justice Jagot will probably take several months to write her judgement.
