Skellerup Holdings, the best-performing company on the NZX 50 index last year, has been slapped with a $20,000 fine for not finding a replacement independent director fast enough.
The NZ Markets Disciplinary Tribunal found Skellerup was in breach of listing rules requiring a minimum of two independent directors be
on the board of a listed company, and that a firm's audit committee have at least three members, most of whom are independent.
The rubber goods manufacturer was granted a three-month waiver in July and has been in breach since October 15, and offered mitigating reasons involving commercially sensitive information.
The tribunal didn't accept the reasons, and considered the breach had gone on for "far too long".
"The tribunal takes the breach of these rules very seriously," the determination said.
"The corporate governance provisions of the rules are of vital importance to the integrity of the market and to give investors' confidence in the directors who are appointed to represent their interests."
The breach came in June last year when it appointed then-independent director David Mair as acting chief executive.
Last week, Skellerup appointed Ian Parton as an independent director.
The shares fell 1.5 per cent to $1.30 in trading today, and have gained 12 per cent this year.
