The London Stock Exchange (LSE) published a disciplinary notice (AD 22) in July 2019, in relation to Telit Communications plc for breaches of the AIM Rules. The company has been publicly censured and was intended to be fined £350,000, but the LSE decided to waive the fine given the difficulties faced by the board and its advisers.
The events subject to the public censure occurred during the tenure of the company's former directors and relate to actions of the director, who was the CEO at the time of the company's admission to AIM.
LSE found that the company breached the following AIM Rules:
- Admission document (AIM Rule 3) – The CEO was found to have a historical indictment issued against him (under a different variation of his name) in the US. Both the indictment and different name should have been disclosed in the company's AIM admission document.
- AIM company and directors' responsibility for compliance (AIM Rule 31) – The company failed to provide successive nominated advisers with the information needed to carry out their responsibilities.
The disciplinary notice highlights that it is the responsibility of the company to include accurate and complete information in an admission document.
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