Vanguard ups stake in WiseTech amid governance issues
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The news: US index fund giant Vanguard lifted its stake in WiseTech Global earlier this month ahead of the company placing its shares in a trading halt as its board discusses governance related matters.
The numbers: Vanguard increased its stake to 6.03%, up from 5.02%, according to a notice WiseTech filed with the ASX. The change occurred prior to 17 February.
The context: The announcement of the change in shareholding comes amid a trading halt of Wisetech shares on Thursday. Earlier this month, it was revealed that WiseTech founder and CEO Richard White was facing legal action over alleged breaches of Fair Work protections.
The company confirmed around the same time that it had received two confidential complaints relating to White — one from an employee and another from a supplier to the company. The developments follow news about White's personal life in October when wellness entrepreneur Linda Rogan accused White of expecting a sexual relationship in return for an investment in her business. The matter was settled, leading to Rogan withdrawing her accusations.
White stepped down as CEO last year, but the board quickly offered him a 10-year consultancy role with the title of "Founder and Founding CEO". As of earlier this month, the contract for that position had yet to be signed.
The source: ASX
