Pyne Gould's board appointment slammed

George Kerr. Photo / Supplied

The appointment of a former journalist to the board of the financial services business Pyne Gould Corp is another example of poor governance, says one fund manager.

Pyne Gould yesterday announced former Sydney Morning Herald economics reporter Gregory Bright would be joining its board as an independent director - two days after a waiver from the NZX ran out.

The company was reduced to one independent director, chairman Bryan Mogridge, when Bruce Irvine left the board in January.

Pyne Gould gained the waiver in February, arguing that it was difficult to find someone to act as independent director when the company was under takeover offer by businessman George Kerr.

His Australasian Equity Partners No 1 LP (AEP) venture with US hedge fund Baker Street Capital secured 76 per cent of the company in a 37-cents-a-share takeover bid that closed in March.

Bright is chairman of his own conference production company, Binalong Advisory Services, the Pyne Gould statement said.

But Milford Asset Management's Mark Warminger said Bright didn't seem to have any deep financial experience. "He is more of a journalist than a businessman. It's certainly not a high quality appointment."

Warminger also questioned why anyone would want to join the board of a company facing scrutiny from the Financial Markets Authority over related party transactions and whose auditor had just resigned. "It just highlights what a poor appointment it is."

Pyne Gould also released a statement yesterday confirming inquiries from the FMA.