Jackson quits commission after action against Nuplex

New Zealand Refining Company chairman David Jackson has resigned from the New Zealand Securities Commission after the announcement of a ground-breaking Commission prosecution - against a firm of which he is a director.
The prosecution relates to civil proceedings being filed against Nuplex Industries and six current and former directors, including Mr Jackson. Each faces a fine of up to $1 million if found guilty.
The NZSC alleges the company breached its continous disclosure obligations, over a two-month period from December 22, 2008 - the first continuous disclosure case brought by the NZSC.
Mr Jackson is himself a member of the NZSC.
He was appointed by the previous government in June 2005. Minister of Commerce Simon Power announced yesterday he had accepted Mr Jackson's resignation from the NZSC, effective immediately.
NZRC spokesman Greg McNeill said yesterday Mr Jackson would not be resigning from the company.
"David is our chairman and remains our chairman. He has done a really sterling job in developing strategy to help provide direction for the company, through good times and difficult times," he said.
The NZSC is going for declarations of contravention, compensatory orders and pecuniary penalties. The maximum penalty is $1 million per defendant.
Nuplex and its directors  said they  would vigorously defend themselves against the allegations and  denied there was any breach of obligations.
Company secretary and counsel E. James Williams said Nuplex was "very disappointed" the NZSC was acting against the company.
"This matter relates to disclosure in connection with discussions between the company and its banks to review one of its debt covenants.
"The negotiations were successful and led to the banks loosening the senior debt cover ratio  following the company's results announcement for the half year to December 31, 2008," he said.
Mr Williams said the discussions had taken place as soon as the company had a clear understanding of the impact of the global financial crisis on demand and the rapid devaluation of the New Zealand dollar.
"The board's view was, and remains, that while the company's negotiations with the banks remained incomplete the company was complying with NZX (New Zealand Stock Exchange) listing rules in not making a disclosure.
"Furthermore, the board believes that disclosure while the negotiations were confidential and incomplete could have prejudiced the company, its shareholders and the banks."
He said the company took its continuous disclosure obligations seriously.
David Jackson, who holds a Master of Commerce (hons) and directorships with Fonterra and Pumpkin Patch, as well as Nuplex and the NZRC, has been an NZRC director since 2004 and in the chair since 2008.