The board and partnership of Allens Arthur Robinson (AAR) has delayed indefinitely the decision on who will succeed retiring chairman Kevin McCann, following the leaking of an internal memo recommending former partner Peter Cameron for the role.

The 28 May internal memo by McCann to the partnership, obtained by the Sydney Morning Herald, sets the scene for Cameron's return as an external chairman and then partner after controversy around the Jackson Inquiry has died down in up to six months time.

The Jackson Inquiry is investigating the Medical Research and Compensation Foundation set up by former asbestos manufacturer James Hardie, of which Cameron is a non-executive director and to which he acted as principal lawyer while at AAR.

AAR's group manager of marketing operations Chris Fogarty confirmed the approach to Cameron, who left the firm in December 2001 to join Credit Suisse First Boston as chairman, Australian investment banking, but said discussions had ceased at Cameron's request. 

"There's no headlong rush to get someone in by 1 July. It's such an important role," Fogarty said. "[McCann] will act as an interim chairman until such time as the partnership thinks they've found an outstanding candidate in the marketplace. We'll continue talking to parties." McCann officially retires from the chairmanship on 30 June.

Asked whether the role was being left open for Cameron, Fogarty responded: "You never entirely rule out anybody but discussions have ceased with Peter Cameron at his request."

The new chairman will work closely with managing partner Tom Poulton in continuing to bed down the merger between Allen Allen & Hemsley and Arthur Robinson & Hedderwicks of 1 July 2001 that created AAR. AAR's director of marketing and client services, David McClune, told ALB that the role would be "very much client-focused". "There's still a little bit of a way to go in terms of integrating the firm," he said.