Plus SMS fined for improper reporting

Plus SMS Holdings Ltd, the mobile phone content provider suspended by the NZX last June, has been further reprimanded for improper reporting to the stock exchange with a $50,000 fine for rule breaches.

At the time of its June 2009 NZX suspension, Plus SMS was trading at 5 cents a share, having once been a $2 share.

The company failed to provide a preliminary announcement of its accounts for the year ended March 2009 in June last year. Several directors, including its chief executive and chief financial officer resigned at the same time, and the company has repeatedly failed to provide any indication of its performance or future plans.

Current directors Robert Hunter and Murray Allot told the New Zealand Markets Disciplinary Tribunal in early February that Plus SMS couldn't provide accounts as it is in ongoing litigation with the former CEO, and he has failed to return various company records and financial information.

However, the Tribunal in its determination said it was the responsibility of the company to be aware of NZX rules, regulations and timeliness of providing proper financial statements, and that such an excuse didn't warrant the ongoing delay.

"The Tribunal also regards a number of the respondent's statements in regard to NZX's case and the Tribunal's questions as aggravating rather than mitigating the respondent's breaches," the Tribunal said in its determination to the market. "It is very important that the fine imposed reflects the serious nature of the conduct in question."

The Tribunal said that it is mindful of the ongoing difficulties the respondent and shareholders face, and that but for these the fine would have been considerably higher.

"Having regard to the maximum penalty that could be impose, the Tribunal's view of the seriousness of the breach, the penalty sought by NZX, the additional aggravating factors identified by the Tribunal, relevant precedents and the circumstances of the Respondent, the Tribunal is of the view that a financial penalty of $50,000 is appropriate," the determination said.

It notes that if the remedial order to provide a full set of accounts is not complied with, NZX should consider exercising its discretion under the rules to cancel Plus SMS's listing.

- BusinessDesk