25 Jun 2013

Diligent shareholders quiz board

8:50 pm on 25 June 2013

Shareholders of Diligent Board Member Services took their opportunity at its annual meeting on Tuesday to ask about the governance issues which have plagued the company.

The company's board, which includes members based in the United States, faced some criticism over the problems earlier this year, which included the company's finances not initially being audited by a registered firm in New Zealand.

This followed Diligent admitting lax in-house controls had contributed to some of its top executives receiving too many stock options.

And only last week one of the directors, Rick Bettle, resigned.

Mr Bettle was one of the directors of the failed finance company, Dominion Finance, and is due to go on trial next week.

Dominion Finance went into receivership in 2008, owing about $177 million to 5,900 investors.

Chairman of Diligent, David Liptak, says that Mr Bettle resigned for his own personal reasons.