Gnashing of teeth as Smiles exec exits

The revolving door at Smiles Inclusive has continued to swing, with the company farewelling its third executive in eight months.

Smiles is now recruiting for a replacement for Ms Corcoran, while Andrew Ritter has been appointed as company secretary.

The revolving door in the C-suite at embattled listed dental play Smiles Inclusive has continued to swing, with the company farewelling its third executive in eight months.

Chief executive Michelle Aquilina — who was appointed in mid-April, the company’s third CEO in two years — announced the departure of CFO and company secretary Emma Corcoran last week. Her departure comes after Smiles’ former chief commercial officer left the company last September.

The Australian is not suggesting Ms Aquilina or Ms Corcoran engaged in any wrongdoing, only that the company has experience high executive turnover.

Smiles shares have been suspended from trading since late February after it missed the deadline to file its audited half-year accounts, which the company said were awaiting final sign-off from KPMG.

Smiles, which trades under the street brand Totally Smiles, has also experienced an exodus of dentists, with 16 informing Ms Aquilina last month they were terminating their service agreements. Some have told The Australian payments to suppliers had been delayed as long as 18 months ago, well before the COVID-19 pandemic.

Rent and staff payments had also been delayed before the company enrolled in the Morrison government’s $130bn JobKeeper scheme after securing a bridging loan from NAB.

Ms Aquilina has confirmed six those 16 dentists have since withdrawn their terminations. This is despite telling the market on April 17 that most of the 16 had withdrawn their terminations.

Ms Aquilina is now facing another corporate governance headache after news of Ms Corcoran’s departure leaked on social media two days before she left the company and Smiles announced it to the ASX.

Companies must inform the market immediately when there are changes to the chair, directors, chief executive, chief financial officer or secretary.

But a spokesman for the ASX said Smiles was in the clear on this occasion because the tweet about Ms Corcoran’s departure was from an account not related to the company.

“The tweet in question is not from a representative of the company, nor from the company’s official Twitter account. Therefore, a breach of the … (ASX) listing rules has not occurred on this occasion,” the spokesman said.

“ASX further notes that trading in the company’s securities remains suspended.”

Ms Aquilina did not respond to a request for comment for this article. But in a statement to the ASX, she said Ms Corcoran would be missed.

“Emma served as chief financial officer and company secretary for a period before my arrival and helped set the company on its transitional pathway,” Ms Aquilina said.

“Personally, I will miss Emma’s knowledge and dedication. On behalf of the executive team and the board I wish Emma every success for her future”.

Smiles is now recruiting for a replacement for Ms Corcoran, while Andrew Ritter has been appointed as company secretary.