PolyNovo shares rally as company addresses governance concerns
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The news: PolyNovo was the best performing company on the ASX 200 index in early trade, after the medical devices manufacturer responded to allegations about its chair David Williams.
The numbers: PolyNovo shares were up 3.8% to $1.25 at 10:45am AEDT, having shed 13% on Friday, after the company confirmed that its CEO Swami Raote was asked to leave amid media reports claiming Williams was the subject of a bullying probe.
The context: After market closed on Friday, PolyNovo noted "some issues were raised with the board about certain interactions between the chair and some management team members".
The company said that it engaged counsel in October last year to hold discussions with Williams and some management team members, and to provide the board with recommendations about the "ongoing working arrangements and professional relations between the chair and management".
The board consequently engaged workplace law firm Kingston Reid to provide training to the board about appropriate workplace behaviour and employee and director responsibilities.
The board has also brought in former Westpac chair Lindsay Maxsted to advise the board on "specific governance matters", including on the interaction between board members and group executives. It has engaged executive search firm Spencer Stuart to assist with skills assessment and succession planning across the entire board.
What they said: "The board is confident that the actions it has taken [...] have approriately addressed the various matters raised, to ensure a positive, safe and inclusive workplace for all our staff," the company said in an ASX release.
"This outcome, balanced with the significant contribution of the chair to the success of the business, ensures the ongoing focus of the company to delivering quality patient care and positive outcomes for all stakeholders."
The source: ASX
