Pyne Gould chairman Mogridge quits 'for personal reasons'

Pyne Gould Corp [NZX: PGC] chairman Bryan Mogridge has left the financial services firm effective from today "for personal reasons," while the company contends with its second share trading suspension in as many years.

The Guernsey-based, NZX-listed firm said Mr Mogridge told the board yesterday of his "decision to step down for personal reasons" effective from today, and the firm will appoint a new chair at its next meeting. That leaves Pyne Gould with just one independent director, putting it in breach of NZX listing rules unless it's granted a waiver by the stock market operator.

The company's shares have already been suspended after failing to file its annual report on time for a second year running, and Pyne Gould has been censured and fined by the stock market operator three times for governance and other listing rule failures. The firm has previously said it expects to file its annual report before the end of this month.

Managing director George Kerr, who has a controlling stake in Pyne Gould, said Mr Mogridge "was a key figure and showed clear leadership through a difficult restructuring period beginning in 2009, which saw PGC rescued through a recapitalisation and led to the formation of the Heartland Bank and the Torchlight Group."

Earlier this month the Shareholders' Association said the NZX should consider delisting Pyne Gould to protect the integrity of the market, calling the situation "farcical when a company that continually fails to meet its obligations is allowed to remain listed."

NZX rejected the suggestion it should proactively delist the company, saying it didn't consider the current circumstances justified such a move.

Last week, Pyne Gould won a court battle with Australian businessman John Grill, whose Wilaci investment unit was seeking $A33.6 million from the financial services firm in late payment fees over a short-term loan.

Pyne Gould shares last traded at 24.5c before they were suspended, less than the 33c Kerr and Californian investment fund Baker Street Capital offered to try to take the company private in 2011.

(BusinessDesk)