Former Lombard Group censured by NZX
The former Lombard Group has been publicly censured by the New Zealand Markets Disciplinary Tribunal for breaching a listing rule and slapped with a $7500 fine.
Lombard Group, the parent of failed Lombard Finance, was renamed Insured Group Ltd (INS) following a reverse takeover by Perth-based insurer Australian Consolidated Insurance earlier this year.
In February, INS was granted a conditional waiver to allow the board to have just one New Zealand-resident director during a three-month period following shareholder approval of the reverse listing proposal
This was agreed to on March 10 and on April 13, two of the three directors resigned to be replaced by four Australian directors leaving Bill Jeffries as the only New Zealand resident on the board.
However, three months later when the waiver expired, no further New Zealand resident directors had been appointed.
On July 8, NZX Market Supervision confirmed with the company no other New Zealand directors had been appointed and then advised the company was in breach of listing rules.
On July 12, INS appointed Daniel O’Leary to the board to resolve the breach.
Following an investigation the New Zealand Markets Disciplinary Tribunal has imposed a $7500 penalty against the company and ordered it to pay its costs and expenses.