Former NZX-listed QEX Logistics Limited (QEX) and its founder, director and chief executive officer, Jingjie Xue, have been ordered to pay civil penalties $ 875,000 and $ 175,000, respectively. Mr Xue has also been banned as a director of any FMC reporting entities for three years.
The penalties and ban were imposed by the Court after the cross-border freight logistics company failed to prepare and file its annual financial statements for several years. QEX was suspended and then delisted from the NZX because of breaches of listing rules and corporate governance requirements.
It is the first time the Financial Markets Authority (FMA) has instigated civil proceedings for breaching financial reporting obligations in the Financial Markets Conduct Act 2013.
FMA's Head of Enforcement Margot Gatland said: "The FMA brought this case because hundreds of shareholders were left without important financial information due to poor management.
"Financial reporting is an important feature of financial markets. It promotes transparency and enables confident participation in markets. Investors need access to timely and accurate information about a company's financial performance. Compliance with reporting obligations is vital for investors."
The penalties relate to failure to comply with two sections under the Financial Markets Conduct Act, which require reporting entities to prepare financial statements that comply with generally accepted accounting practice, have those financial statements audited, and to file those audited financial statements with the Registrar of Companies within four months of the entity's balance date.
QEX and Mr Xue cooperated with the FMA throughout its investigation and the proceedings.
