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John Wells resigns as president of CBL and two other directors join the board after the Autorité des marchés financiers said he was worried that the bankrupt insurer would not comply with disclosure rules and of accountability and that the directors do not respect their fiduciary duties. ] The market surveillance agency is working with the Reserve Bank and Serious Fraud Office to investigate the insurer after the prudential supervisors in New Zealand and Ireland requested interim liquidation orders in their respective jurisdiction. The FMA has been investigating CBL's disclosure amid fears that the rules of the public market have been violated, and said today that a preliminary assessment raised concerns about the company. 39; insurer. and the duties of the directors. He also stated that he considered the role of Deloitte as auditor of the company.
The regulatory body stated that interested parties have asked it to use powers of intervention and exercise potential shareholder rights under the Act on the companies. The FMA has said that it will only use this power if it is in the public interest.
"At the present time, given the preliminary stage of the investigation, the FMA has not yet determined whether the use of this power would be appropriate," the statement said. . CBL appointed volunteer administrators in March after the Reserve Bank requested a provisional liquidation of the supervised branch of New Zealand and the Central Bank of Ireland took similar action against CBL's European Commission
A statement from the CBL Board of Directors today acknowledged the contribution of Wells, Paul Donaldson and Ian Marsh. "The details of a renewed board will be announced at the time of the meeting. presentation of the restructuring to the shareholders, "he said.
Defending the shares of the board today, Wells said the directors were aware of the need for new capital, but his plans had been disrupted. As Chairman, he said: "I particularly regret that I have been unable to communicate directly with the shareholders and the other party. s, given the nature of the administration and the winding-up procedures. our resignation is the appropriate option in these circumstances, and brings clarity and certainty to our position. "
The Auckland-based insurer saw its action suspended at the NZX on February 8 because of NZX Regulation's concerns over the information it had given to the market, following a commitment between it, CBL, the Financial Markets Authority, the Reserve Bank, and a number of foreign regulators with prudential oversight of CBL's international insurance business.On February 20, CBL Insurance told the Reserve Bank that It continued to operate despite regulatory solvency lower than the norm.
The FMA stated that it did not think it was appropriate to use powers for the sole purpose of seek compensation for shareholders, with other avenues available to investors.
(BusinessDesk)
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