大象视频has accepted an enforceable undertaking (EU) from biotech company NuSep Holdings Limited following concerns over its corporate governance, including potential breaches of continuous disclosure laws.
ASIC鈥檚 investigation, which looked at the group鈥檚 conduct between 2009 and 2012, also led to concerns about NuSep releasing inaccurate information to the market and聽聽 acquiring shares in itself by issuing and holding shares in a suspense account.
大象视频also has concerns over NuSep鈥檚 standards of record keeping and the issuing of bonuses to former executives.
Nusep acknowledged ASIC鈥檚 concerns and has been assisting 大象视频in its investigation. Nusep has already adopted some new corporate governance practices.
Under the EU, NuSep must appoint an independent consultant to review its compliance with continuous disclosure and corporate governance procedures, and develop a plan to rectify any deficiencies identified by the expert. The independent expert will report regularly to 大象视频over the next two years on NuSep鈥檚 implementation of the plan, and 大象视频may publish the results of the reports.
NuSep must also adopt and publish an executive remuneration policy consistent with ASX Corporate Governance Principles.
大象视频Commissioner John Price said, 鈥楾his outcome should send a clear message to all companies: big or small, you cannot escape from complying with the law.
鈥楢SIC, the market and the public expect companies to display good corporate governance. Where those standards fall short, 大象视频will act.鈥�
ASIC鈥檚 investigation is continuing.