Diligent CEO resigns, stays on board

TAKING RESPONSIBILITY: Diligent Board Member Services chief Brian Henry has admitted he made an error in not disclosing his brother's fraud conviction, andsays he got a 'telling off' from NZX.
ROSS GIBLIN/Dominion Post
TAKING RESPONSIBILITY: Diligent Board Member Services chief Brian Henry has admitted he made an error in not disclosing his brother's fraud conviction, andsays he got a 'telling off' from NZX.

Diligent Board Member Services founder Brian Henry today resigned as chief executive after he admitted he should have disclosed his relationship with Energycorp, that failed in the 1980s, forcing him into bankruptcy.

However, the board has allowed him to remain as a director and has offered him a job as global sales chief, which he has accepted.

Mr Henry also failed to disclose his brother Gerald's past. He fled the country owing $55 million and subsequently was jailed for four years in the United States in 1991 for fraud.

New York software company Diligent listed on the sharemarket yesterday after raising $24 million from local investors.

The shares issued at $1 issue made an inauspicious debut, falling to 95 cents yesterday and today were trading at 90 cents.

In today's statement, Diligent said: "With the benefit of hindsight, he (Brian Henry) regrets not having disclosed his relationship with EnergyCorp, and its receivership in the 1980s, which resulted in his subsequent bankruptcy.

"Brian Henry has therefore offered to resign his role as CEO of Diligent Board Member Services, Inc., (DBMS), to the Board of Directors, which the Board has accepted."

Alex Sodi, the current president, takes over as chief executive with immediate effect.

Mr Sodi has been president of DBMS and its predecessor companies since 2002 and, since 2001, has led the development of Diligent.

The board said it recognised Mr Henry's sales skills, leadership qualities and experience.