It's alleged Richard White had personal relationships that were not disclosed to the Board
It’s understood the CEO and co-founder of WiseTech misled the firm’s board about the nature of several relationships, a review has found.
The 69-year-old billionaire, who founded the logistics software firm in 1994, stepped down from his role as CEO in October following allegations he had two separate relationships that were not disclosed to the board – one with an employee and one with an with an associate of a company supplier, according to ABC.
It is understood a review is being undertaken into the company’s code of conduct and that the review concluded the relationships were “not fully transparent and candid” and “misleading” in some aspects.
In a statement released by the firm, the Board Sub-Committee (compiled of all directors other than White) have indicated that a number of matters are “serious in nature, and that such conduct is not acceptable and must not be repeated”.
The Board Sub-Committee is undertaking a review of the Company’s Code of Conduct to enhance the provisions regarding the disclosure and management of close personal relationships that are connected with the Company, the statement reads.
In response, Mr White accepts that, with the benefit of hindsight, he would have more fulsomely disclosed them [the relationships] to the Board and handled the contracting process differently.
The statement ends that White is still committed to contributing to the success of the Company he co-founded, following his change of role to Executive Chair.
The Australian Financial Review reports that no action will be taken against White, despite his conduct.
The price of shares in the firm have dropped by 1.17%.
