The NZ Markets Disciplinary Tribunal has found that Insured Group Limited (formerly Lombard Group Limited) breached Rule 3.3.1(b) of the NZSX Listing Rules between 11 June and 11 July this year, when it failed to have at least two directors who were ordinarily resident in New Zealand.
The penalties imposed by the Tribunal in respect of the breach include:
- public censure;
- the sum of $7,500 by way of penalty; and
- an order that the company pay the actual costs and expenses incurred by:
- the Tribunal in considering this matter; and
- NZX in relation to this matter (up to $4,000 plus GST (if any)).
The Tribunal accepted that the breach was not deliberate and was due to the company being mistaken as to the date that a waiver granted by NZXMS in February 2010 (which provided the company with temporary relief from Rule 3.3.1(b)) ceased to apply. However, the Tribunal rejected the implication that NZX was in any way responsible for not drawing the terms and conditions of the waiver to the company's attention. The Tribunal found that it was the company's responsibility to:
- ensure that it reviews and understands the relief granted by NZX in its waiver determinations and to ensure any such waiver is suitable for its requirements; and
- comply with the terms of any such relief.