NZX regulator confirms Michael Stiassny, Gordon Shaw for NZ Automotive board

NZX says Michael Stiassny and Gordon Shaw can be classed as independent directors of NZ Automotive, the company behind 2Cheap Cars. Photo / NZME

The NZX's regulatory arm, NZ RegCo, said it was satisfied that nominees Michael Stiassny and Gordon Shaw would qualify as independent directors for the NZ Automotive Investments (NZAI) board, under its listing rules.

NZ RegCo had earlier questioned NZAI about the nominations, which came after the sudden resignations of four directors last month.

The walk-out has had repercussions for NZAI, the company behind 2Cheap Cars.

NZAI said yesterday that its bank was unable to give any assurance of support for its trade finance and motor finance facilities beyond current expiry dates.

The company said the advice was understood to relate to recent announcements about changes in company leadership and governance, as opposed to the current or forecast financial position of the business.

All non-executive directors of the company, Charles Bolt, Tim Cook and Tracy Rowsell, as well as executive director and founder shareholder Eugene Williams - who owns 34.4 per cent of the company - resigned last month.

NZAI has said it is in a sound financial position and was in compliance with all of its banking covenants as at July 31.

A more detailed update of the company's financial performance and position will be provided to the market on or before August 20.

NZAI's major shareholder David Sena - who has 46 per cent of the company - had said he was confident the board nominees would qualify as independent directors.

NZ Shareholders' Association chief executive Oliver Mander also said that the association was happy that Shaw, who had a background with Vehicle Inspection NZ, and Stiassny, who had experience in corporate governance, restructuring and insolvency, would fit the bill as independent directors.