Thursday 4th April 2013
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Diligent Board Member Services, whose trebling of annual profit has been undermined by administrative errors, will ask shareholders to appoint a new director and auditor at the upcoming annual meeting in June.
The New York-based firm's board today resolved to add another director and will ask shareholders to appoint ex-tech company chief financial officer Greg Petersen at the AGM, it said in a statement. Petersen is currently a private investor and sits on the boards of US software firms PROS Holdings and KIT Digital.
"Greg's business experience including as a chief financial officer of several successful software companies and as a director of two publicly listed companies will add additional strength to Diligent's board," chairman David Liptak said.
Diligent will also seek ratification for Deloitte Touche LLP as auditor after it existing arrangement with Holtz Rubenstein Reminick LLP didn't meet New Zealand reporting requirements.
The company faces breaching local listing rules after failing to meet the reporting requirements and not getting a waiver from authorities.
The software maker fell afoul of legislation because Holtz Rubenstein Reminick LLP, which has audited Diligent's accounts since 2008, was not licenced in New Zealand and couldn't be registered because of its limited liability partnership status.
Diligent's auditor oversight was another embarrassment for the firm after it found it had inadvertently issued executives more options than they were entitled to, tarnishing an otherwise strong operational year.
The shares were unchanged at $6.30 today, and have gained 14 percent this year.
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