Dicker Data defends delay in revealing ex-CEO David Dicker’s suspension
The IT firm’s board has backed withholding its billionaire founder’s suspension, after the ASX probed the company over disclosure obligations.
Software firm Dicker Data’s board, led by ousted billionaire David Dicker’s ex-wife Fiona Brown, has defended holding back information on his April suspension from investors until he resigned as chairman and chief executive three weeks later in May.
Mr Dicker told The Australian last month he was removed from the IT distribution company he co-founded with Ms Brown over “false” bullying allegations after he tried to implement an executive reshuffle to arrest a declining financial performance.
In response to The Australian’s story, sharemarket operator ASX Ltd sent a letter to Dicker Data on October 2, raising a number of questions linked to its disclosure and listing obligations.
On Monday, Dicker Data — now chaired by Ms Brown — confirmed Mr Dicker’s suspension was “to enable DDR to conduct an investigation into a confidential whistleblower complaint” made against him with respect to alleged treatment of an executive in his position as chairman and chief executive.
The company claimed the removal of Mr Dicker, which included him being blocked from his company email account and having his corporate credit cards frozen, was “not information that DDR … believes a reasonable person would expect to have a material effect on” the company’s share price “or would expect to be disclosed to the ASX”.
Mr Dicker’s suspension was never announced to the ASX.
He denies bullying any Dicker Data executives or board members.
Dicker Data was started by Mr Dicker in 1978 with the help of Ms Brown. He sold his remaining $250m stake in the company in early September, ending a 47-year association with a business that still bears his name.
Mr Dicker had left Dicker Data in sudden and previously unreported circumstances in May, after an emergency board meeting was called by Ms Brown and other Dicker Data directors on April 27.
The meeting was held to discuss bullying allegations against him relating to long-time Dicker Data chief operating officer and executive director Vlad Mitnovetski.
The meeting came three days after Mr Dicker as then-chairman and CEO, concerned about Dicker Data’s declining profit growth, attempted to make executive changes.
On May 16, Dicker Data said Mr Dicker was stepping down “to pursue other interests” and Ms Brown — now the company’s biggest shareholder and also a member of The List - Australia’s Richest 250 — would become executive chair.
On Monday, Dicker Data admitted it suspended Mr Dicker because it was conducting a “strictly confidential and legally privileged” investigation into him.
His suspension, the company said, had no impact on day-to-day operations because it had a three-person executive team, including Mr Mitnovetski, running the business.
Mr Dicker claims he was never told on what grounds he was suspended. “I was completely cut off with no explanation or reason,” he told The Australian last month.
On Monday, Dicker Data claimed there was no obligation to disclose the suspension information prior to Mr Dicker’s subsequent departure. It was then that “DDR took immediate steps to make the announcement, which was at a time where Mr Dicker had agreed to resign from all positions and offices held.”
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