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The chief executive and New Zealand founder of US software company Diligent Boardbooks has resigned just two days after its listing.
In a statement to the stock exchange yesterday, Brian Henry said he had offered his resignation to the board of Diligent Board Member Services and they had
accepted it.
The move follows controversy over Henry's failure to disclose involvement with EnergyCorp, which went into receivership in the late 1980s and resulted in his bankruptcy.
Diligent listed on Tuesday after a successful initial public offering. Its $24 million capital raising closed oversubscribed, putting the initial value of the company at $104 million.
But the IPO was dogged by media reports that Henry and the board had failed to disclose his involvement in EnergyCorp. Reports also discussed his brother Gerald Henry, a convicted fraudster.
The company has since stated that Gerald Henry does not have any involvement with Diligent although he has acted as a consultant for other companies which his brother has been involved with.
Henry said that with the benefit of hindsight he regretted not having disclosed his relationship with EnergyCorp. He will be replaced by president Alex Sodi as chief executive but will remain on the board and take on a new role as global sales director with the company.
Sodi has been president of Diligent Board Member Services and its predecessor companies since 2002 and has led the development of Diligent Boardbooks since 2001. He will continue to be president and will be based at the companies offices in New York.
Board member and investor Peter Huljich said Henry had handed in his notice to the board on Wednesday and the decision to accept his resignation was unanimous.
Huljich said he viewed Henry's resignation as a positive move which would free him up to focus on sales.
The money raised through the IPO is expected to be used to fund the roll-out of an international sales force. Huljich said Henry would head this, spending much of his time travelling between Britain, Europe and the US.
Diligent's head office is based in New York but it has a division in Christchurch where its software is developed. Its main product, Diligent Boardbooks, allows the directors of corporates and other organisations to review, update and comment on board materials via the internet.
Diligent was only the fourth company to list on the main board of the stock exchange this year and is the first US company to list in New Zealand.
Its share price closed down 3c yesterday at 87c. The shares listed at $1.
Quick work
* Diligent Board Member Services CEO Brian Henry has resigned.
* He will remain on the board and will take up a role as global sales director.
* The company listed on the NZX on Tuesday and was the first US company to list in New Zealand.