Stream Group directors pinged for helping themselves without shareholder approval
Insurance claims manager Stream Group has been rapped over the knuckles by the ASX for selling shares to parties related to its directors.
Earlier this year the company (ASX:SGO) issued 2.2 million shares at 4c to Notron, the family superannuation fund of director Lawrence Case.
Another director Christian Bernecker was issued 550,000 options via his entity Longreach Group — through they were not exercised.
Under ASX rules, a company must not issue equity to a related party without shareholder approval.
Stream has been ordered to cancel or buy back the shares — this time with shareholder approval.
“The issue of the breach options and the breach shares were in breach of listing rule 10.11 because Notron and Longreach Group are each related parties of the company and the company did not obtain prior shareholder approval for their issue,” Stream told investors.
“The listing rules do not provide for the ratification of securities issued in breach of the listing rules.”
Stream has called a general meeting for December 14.
The group’s Australian claims management business was placed in voluntary administration in December 2015.
Chairman Lawrence Case described 2016 as “a tumultuous and highly disappointing year” in the company’s annual report released in September.
Though 2017 was a “watershed” following the sale of claims management business Symetri to a New Zealand insurance company.
Stream shares have been suspended since 2016.