Trading halt for Diligent

Last updated 09:21 19/02/2013

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Trading in stockmarket darling Diligent Board Member Services has been halted after the company warned it may have to restate its accounts going back several years.

In a statement to the stock exchange this morning, the software company said it was likely to get a report from a big accounting firm today which could lead to a restatement of 2012 accounts and accounts for prior years.

The problem involved the cancellation of stock options issued to executives under Diligent's 2007 and 2010 incentive plans, it said.

Last month a Diligent board committee revealed options issued to chief executive Alessandro Sodi under the 2007 and 2010 schemes had exceeded the maximum allowed by more than 4 million shares.

The committee said the errors "were inadvertent, and attributable in part to the constrained resources of Diligent in a period of financial difficulty in the years following its listing."

Diligent shares closed at $5.35 yesterday, valuing the company at $448 million.

The stock has risen more than 100 per cent from $2.55 a year ago.

Diligent sells software helping corporate boards organise and share documents. The company is based in the US and listed on the NZX in 2007.

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- BusinessDay.co.nz

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