Australia’s ASIC to probe WiseTech after mass exodus of management, founder’s return

Australia’s corporate regulator has initiated “preliminary inquiries” into WiseTech Global (WTC.AX), it said on Wednesday, amid a tumultuous week that also saw a mass exodus of executives and the surprise return of founder Richard White as chairman.

Earlier this week, four of WiseTech’s non-executive directors stepped down owing to differing views around White’s former role as CEO. The company then appointed White as its executive chairman in a surprise announcement early on Wednesday.

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“We are conducting preliminary inquiries and will be making decisions imminently about any next steps for ASIC,” Joe Longo, chairman of the Australian Securities and Investment Commission (ASIC), said in an emailed response to Reuters.

WiseTech Global did not immediately respond to a Reuters’ request for comment.

The logistics software maker, founded by billionaire White, has been navigating a period marked by media allegations of misconduct, corporate governance concerns and a sagging share price.

Its stock has declined around 14% since last October, when WiseTech said it had been reviewing matters related to White.

Shares rose 2.1% to A$96.5 on Wednesday following the founder’s return.

Source: www.reuters.com

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