Skellerup fined for breach of independent director rule

Monday 23rd May 2011

Skellerup Holdings has copped $25,000 in fines and a public telling off from the New Zealand Markets Disciplinary Tribunal for not having enough independent directors on its board and audit committee.

Companies are required to have a minimum of two independent directors on a board, while the audit committee must have a minimum of three, the majority of whom must be independent.

The company initially had a waiver for three months to October 15, 2010 for these rules, but when the period stretched out the tribunal said it was not satisfied with the reasons advanced for the significant delay.

The tribunal ordered Skellerup to pay a total of $25,000 for breaches of three rules and said the penalties were at the upper end of the range.

On May 16, Skellerup announced that Ian Parton was joining its board and he would be an independent director.

The company has been a star performer on the market.

NZPA

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