This paper proceeds from the view that managerial capture has already become a fundamental problem after a couple of decades of largely untrammelled managerialism in our public universities, and that this problem is likely to be compounded by further shifts towards deregulation and de facto privatisation, which is the direction that current federal government policy is trying to take in the higher education sector. Greater managerial capture and greater susceptibility to steering by corporate interests promote greater diversion from the public good missions of public universities and increasingly dysfunctional internal governance with grave consequences for workplace culture. The paper argues that a counter-movement to democratise public universities is overdue.