Geelong Grammar School moved a teacher who dropped his pants during biology class before later sacking him, an inquiry has heard.
The teacher who "blotted his copybook", as the school put it, by dropping his pants to demonstrate the reproductive system was initially moved to its junior campus, the child abuse royal commission heard.
Legally referred to as BIM, the teacher was sacked by a new principal in 1974 but was re-employed as an emergency teacher in 1980.
When Geelong Grammar later received a complaint that a former student had been sexually abused by BIM in 1980, the legal advice was to show "lots of concern and clucking" but make no admissions, the commission heard.
Former principal Lister Hannah said that "clucking" advice, detailed in a 1997 fax by then Glamorgan campus head Phillipa Beeson, was unfortunate and was not the approach the school took to the abuse complaint from the student, known as BIR.
The commission also heard Geelong Grammar's long-time maths teacher and house master Jonathan Harvey was paid his $64,348 salary for 2005 after agreeing to retire at the end of 2004 following a misconduct complaint.
Then headmaster Nicholas Sampson suggested in June 2004 that it would be sensible for Mr Harvey to retire early, after the school received a complaint of misconduct involving a former student, the inquiry heard.
"He suggested that he'd been led to believe that, if I retired early, a formal complaint would not be made, but he wasn't of course certain of that," Mr Harvey told the commission on Monday.
Mr Harvey, now 75, said there was no mention of sexual misconduct nor any specifics of the misconduct allegation.
He guessed it involved former student BLF but made no admissions to Mr Sampson.
Mr Sampson - now the headmaster of Sydney's Cranbrook School - wrote to Mr Harvey thanking him for his "outstanding service" since 1970, saying he had been a wonderful teacher.
The student later went to police and Mr Harvey was jailed in 2007 for 10 months with another 22 months suspended after pleading guilty to sexually abusing BLF between 1976 - when the pupil was 16 - and 1978.
The commission heard Mr Harvey remained employed at Geelong Grammar despite several senior staff raising concerns in 1991 about his relationship with some students that were not in the pupils' best interests and "distressing" activities outside school.
It heard Mr Harvey had a homosexual relationship with an adult Malaysian exchange student who was living with him in his school-provided accommodation.
Another student, BKM, has told the child abuse royal commission Mr Harvey touched his genitals in 1982, which Mr Harvey has denied.
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