Shares in QEX Logistics have been suspended after the company announced all three of its independent directors had resigned effective immediately.
The regulatory arm of the NZX said it had exercised its discretion under the listing rules to suspend trading in the company before the market opened this morning.
The suspension follows QEX's announcement that its three independent directors had all resigned.
NZ RegCo said those resignations meant the company only had one director who was not independent.
"This means that QEX no longer meets the NZX Listing Rule requirements relating to board composition, including the director residency requirement, independent director requirement and audit committee composition requirement.
"RegCo considers that a suspension is in the best interests of the market, given the intent and objectives of the relevant corporate governance provisions."
This morning QEX announced chairman Connor English and directors Danny Chan and Martin MacDonald were leaving the board due to differences with Ronnie Xue - the company's majority shareholder, CEO and sole remaining director.
"A process to urgently appoint replacement independent directors has been established in order to ensure that the company can meet its listing requirements.
"The market will be provided with more details once available."
The company also revealed its wholly owned subsidiary New Y Trading had received notice from Westpac that it had breached its interest cover obligations to maintain a cover ratio of no less than 2.5 times.
QEX said that New Y Trading's interest cover was calculated at negative 6.50 times on December 31, 2020 but that Westpac had formally waived its right to take action in respect of the breach.
"New Y Trading will continue to take steps to improve its trading position to rectify its interest cover levels."
The director resignations are the latest troubles for the logistics firm.
Last year it reported about $4 million of inventory appeared to have been stolen from its bonded warehouse in China.
Its shares last traded at 28.5c and are down 62 per cent in the last year.
NZ Reg Co said the share suspension would remain in place until further notice.