Dubber seeks court order over appointment of EY as auditor
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The news: ASX-listed software firm Dubber has lodged an application with the Supreme Court of Western Australia, claiming that its appointment of Ernst & Young (EY) as auditor of the company is valid despite not seeking shareholder approval due to an "administrative oversight".
The context: In a release to the ASX, Dubber said that it has become aware of an administrative oversight in relation to the appointment of EY as the company's auditor in 2023.
Dubber announced on 30 November 2022 that its board had resolved to appoint EY, subject to ratification by the company's shareholders at its 2023 annual general meeting (AGM), in accordance with the Corporations Act.
However, Dubber said that the company did not include an appropriate resolution at the AGM.
Dubber confirmed that both its interim financial report for the half-year ending 31 December 2023 and its annual report for the financial year ending 30 June 2024 were prepared in accordance with the Corporations Act and Australian accounting standards, and were reviewed and audited by EY in accordance with applicable Australian auditing standards.
EY said that Dubber's failure to seek ratification of its appointment at its 2023 AGM does not impact the independent auditor's work across the half-year and full-year reports in question.
Dubber, which has lodged an application at WA's Supreme Court seeking orders under the Corporations Act to declare that the appointment of EY as auditor of the company is valid, said the application will be heard by the court on Thursday.
Dubber said it expects the matter to be resolved in the coming days and it does not consider the issue to be price sensitive due to its administrative nature.
In August, the embattled voice recording tech company looked to be at risk of insolvency as auditors flagged "material uncertainty" in its full-year results and issued a correction to previous years' accounts.
In February the company found that its funds had been allegedly misused by former chief executive Steve McGovern and a third party trustee with $26.6 million still unaccounted for.
The source: ASX announcement
