Brian Henry, the chief executive of software firm Diligent Board Member Services, which listed on the NZX earlier this year, has resigned due to the non-disclosure of his involvement in EnergyCorp, a 1980s stock market high flier that went out of business after the 1987 sharemarket crash.
Henry has been replaced as CEO by Alex Sodi, who was president of the company and is now president and CEO. Henry will remain on Diligent’s board and is now the company's global sales director.
Diligent is based in New York but was founded by Henry, an expat New Zealander. Its software division is based in Christchurch.
Its flagship product is Diligent Boardbooks, which, according to the company’s website, “streamlines the process of preparing, viewing and approving board and committee documents”.
In the 1980s, Henry and his brother Gerald were directors of EnergyCorp. Gerald Henry was bankrupted in New Zealand in the late 1980s and later moved to the US, where he spent time in prison for fraud in the 1990s.
Diligent issued a statement saying Gerald Henry had nothing to do with Dilignet, following an article about his past in the National Business Review.
The Sunday Star-Times pointed out on December 9 that Brian Henry had been involved with EnergyCorp in the 1980s, a fact that appeared not to have been disclosed to the NZX during Diligent’s listing process.
Diligent is due to report its latest sales figures on Monday.