Flash memory and CE distributor Cellnet Group (ASX:CLT) said it is deviating from best-practice corporate government guidelines while it works to restore profitability to the business.
In an update to the ASX, Cellnet said the company is not currently complying with ASX guidelines that a majority of the board – including the chair – be independent directors.
But the company, which is in the midst of a turnaround plan which has led to a shrinking of the business, currently only has three non-managing directors, none of whom are independent.
The board feels that the scale of the business only necessitates a four-person board, and that the directors have the capabilities required to run the business.
But Cellnet said it plans to return to full compliance with best practice guidelines as soon as possible.
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