16 Oct 2015

Shareholders' Association urges NZX to delist Pyne Gould

6:52 pm on 16 October 2015

It is time for NZX to consider delisting investment company Pyne Gould Corporation (PGC) from the sharemarket, the Shareholders' Association says.


Photo: Getty Images

Pyne Gould is currently suspended from trading on the NZX for failing to file its audited annual return on time - for a second time.

The association's chair, John Hawkins, said Pyne Gould had continually failed to meet its obligations and the situation had become farcical.

He said the association had made five written complaints to the NZX and the Financial Markets Authority about Pyne Gould over the past year, but was not satisfied with the response.

Mr Hawkins said that, generally speaking, the reaction to the association's complaints had been that the market was informed and could make its own decisions.

"In our opinion, this is total nonsense. Just because the market knows a company may not be in compliance, doesn't mean that shareholders are able to assess the effect of that non-compliance, without access to full, accurate and timely information.

"In our view, it is time NZX stopped the constant appeasement and got on with their primary obligation to protect investors from a company that is repeatedly failing in its obligations," Mr Hawkins said.

The NZX said there was no reason to expel Pyne Gould Corporation as a listed company, although it was still working with the company to make sure it complied with the market's rules.

It said it had suspended the company for not producing its financial result by the necessary deadline, but the Shareholders' Association had not provided any other specific information to show PGC had broken the rules.

The Financial Markets Authority, which has responsibility for how companies produce their annual accounts, said it had engaged with the directors of PGC and its advisors on a number of fronts, including PGC's financial reporting, and would continue those discussions where appropriate.

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