First came the HR affair scandal. Now comes the shareholder showdown: Sources reveal the tough questions facing Super Retail’s board as investors demand answers at a tense AGM

Super Retail Group shareholders are expected to question the board at its AGM about whether the company will pay former chief executive Anthony Heraghty’s legal costs as he faces an Australian corporate watchdog case. The hearing and AGM are scheduled for 29 October, putting scrutiny of the company’s handling of the matter in focus.

ASIC alleges Heraghty had conflicts of interest linked to his relationship with former HR executive Jane Kelly, including involvement in decisions about her $817,000 redundancy package, whistleblower complaints and litigation. It also alleges he misled the board and approved a misleading market announcement by not disclosing the relationship. The company’s annual report says directors may be indemnified for certain legal costs, but Super Retail did not say whether the arrangement still applies to Heraghty after his dismissal. Its legal and regulatory bill was $28.6 million before tax last financial year, up $17 million, and the Australian Shareholders Association is expected to seek greater transparency.