Sharechat Logo

Steel & Tube censured over 2009 disclosure breach

Wednesday 4th June 2014

Text too small?

Steel & Tube Holdings, which manufacturers steel building products, has been censured by the stock exchange's NZ Markets Disciplinary Tribunal after it failed to vote on the election of a director in 2009.

The Wellington-based company settled with NZX over the 2009 appointment of Dave Taylor to the Steel & Tube board which wasn't voted on by shareholders until last year's annual meeting. At the time, Taylor should have retired at the meeting and his appointment put to shareholders, though that didn't happen until 2013.

The NZX watchdog approved a settlement between the stock exchange operator and Steel & Tube which included a public censure, a $12,000 penalty plus costs, saying the company's majority shareholder at the time probably would have approved Taylor's appointment, and that since the breach Steel & Tube's board and management have undergone significant change and introduced new processes and procedures that included company compliance.

"The tribunal has previously stated that a breach of the corporate governance provisions of the rules is a serious matter," the NZ Markets Disciplinary Tribunal said in a statement. "They are of vital importance to the integrity of the market and to give investors confidence that directors have been appointed to represent shareholder interests."

Steel & Tube was also ticked off for not announcing the resignation of a senior manager in June 2013 or notifying the stock exchange for changing its registered address, though both breaches were deemed minor. The exchange only became aware of the breach in January this year.

The shares increased 0.3 percent to $3.09, and have edged up 1.3 percent this year. The stock is rated an average 'sell' based on four analyst recommendations compiled by Reuters, with a median target price of $3.16.

BusinessDesk.co.nz

Bond Offer: Infratil Ltd, 7.2 year & 10.2 year unsecured unsubordinated bond


  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

NZ dollar sags after avalanche of data and central bank action
Fonterra board starts planning chair succession
Fulton Hogan keeps Australian civil construction unit
Time for congestion pricing has come - NZIER
Colliers defends KiwiBuild as 'far from a colossal failure'
Pushpay shares rise as cost-cutting upgrades earnings guidance
20th September 2019 Morning Report
NZ dollar weaker against British pound on EC president's Brexit optimism
Todd plans Kapuni drilling campaign
MARKET CLOSE: NZ shares gain; appetite for KFC helps Restaurant Brands hit record

IRG See IRG research reports