MCK statement on NZMDT determination

Millennium & Copthorne Hotels New Zealand Limited (MCK) acknowledges the determination and public announcement released by the NZ Markets Disciplinary Tribunal (the “Tribunal”) today, regarding breaches relating to disclosure of certain governance matters and the historical composition of its Audit Committee between 2018 and 2020.

MCK accepts responsibility for the breaches and fully complied with NZ RegCo’s investigation.

MCK has been ordered to pay a financial penalty of $50,000 in respect of these breaches, and to meet the NZ RegCo’s and the Tribunal’s costs in connection with the matter.

In its determination, the Tribunal acknowledged that MCK was well-intentioned when including only Independent Directors on its Audit Committee, thereby reducing it to two members rather than three as required under Rule 2.13.2(b). MCK notes that this breach was historical in nature (occurring over three years ago) and had been identified and self-corrected by the company in 2020.

MCK is disappointed by the amount of the penalty, particularly given the historical nature of the Rule 2.13.2(b) breach. MCK notes that the Tribunal found that NZRegCo had not presented evidence that the breaches have caused actual loss.

ENDS
Issued by Millennium & Copthorne Hotels New Zealand Limited

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Announcement PDF