The regulator, Australian Securities Exchange, raised questions to Corporate Travel Management Limited (ASX: CTD) after the company announced the change in the director’s interest approximately a month later than the change had been made.
This translates the off-market disposal of 180,836 shares in CTD by an entity associated with Anthony Bellas on 14 February 2019, but the notification for the same being released by the company on 13 March 2019. To this, the Australian Securities Exchange asked CTD, via a letter dated 14 March 2019, to explain why the announcement was lodged late.
In the response dated 18 March 2019, Corporate Travel Management Limited explained the entire case that has happened with Mr Bellas which subsequently represents the reason for the delay. The company informed that it first became aware of the matter on 11 March 2019 when Mr Bella advised CTD that he had just been made aware by the bank which advises him on his superannuation investments that a parcel of CTM shares had been transferred from a superannuation fund whose beneficiaries include both Mr Bellas and Mrs Maria Bellas to a superannuation fund of Mrs Bellas on 14 February 2019.
It was in response to the order made by the family court as per which the joint interest of Mr Bellas and his former spouse Maria Bellas in 180,836 CTM shares then held by a superannuation fund has to be transferred to Mrs Bellas along with the interest in certain other assets. Subsequent to the making of the court order, Mr Bellas signed documents to facilitate the future transfer of the CTM shares but thought that it would not be transferred as according to Mr Bellas understanding no party could act on the court order till the correction is made in the order as it contains the error in the issued copy.
But contrary to Mr Bellas understanding the transfer was made by the Bank despite the fact that the corrected court order has not yet been issued by the court registrar. On 11 March the information of this transfer came to the notice of Mr Bellas who then immediately informed the company.
CTD subsequently lodged the change in director’s interest and confirmed that as to its best belief “the transfer of the shares occurred on 14 February 2019 without Mr Bellas' knowledge and contrary to his understanding that no transaction could occur before the error in the court order was corrected.” As per the company’s latest announcement, Anthony Bellas indirect interest currently stands at 40,000 shares in CTM.
ASX further intrigued about the arrangement that the company has in place with its directors to ensure that it is able to meet its disclosure obligations under the listings requirement, to which the company confirmed in its reply. Corporate Travel Management further stated that it does not consider any disciplinary or remedial action is necessary to be taken in these circumstances.
In today’s trading session, CTD stock price surged by 1.568% to last trade at $23.970 on 18 March 2019. Over the past 12 months, the stock price declined by 5.03% despite a positive momentum of 4.80% in the past three months.
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