Two Director Interest Notices Lodged Late by Lakes Blue Energy, ASX Probes
Lakes Blue Energy has responded to ASX concerns over delayed disclosure of director interest changes, attributing the issue to administrative oversights and reaffirming its commitment to compliance.
- Late lodgment of two Appendix 3Y notices for directors Sleeman and Mather
- Delays due to administrative oversights, not active trading
- Company emphasizes existing compliance policies and director notification obligations
- Measures taken to reinforce timely disclosure and prevent recurrence
- ASX raised potential breaches of Listing Rules 3.19A and 3.19B and Corporations Act section 205G
Background to the ASX Query
On 24 January 2025, the Australian Securities Exchange (ASX) issued a formal query to Lakes Blue Energy NL (ASX: LKO) regarding the late lodgment of two Appendix 3Y notices. These notices relate to changes in the notifiable interests of directors Roland Sleeman and Nicholas Mather, which should have been reported within five business days of the changes occurring in mid-2024.
The ASX's letter highlighted potential breaches of Listing Rules 3.19A and 3.19B, which govern timely disclosure of director interests, and also raised concerns about possible contraventions of section 205G of the Corporations Act 2001. The exchange requested a detailed explanation of the delays and the company's arrangements to ensure compliance.
Lakes Blue Energy's Response and Explanation
The company emphasized its commitment to compliance and good corporate governance, noting that it has formal agreements with directors requiring prompt notification of any changes in their interests. Lakes Blue Energy also pointed to its Securities Trading Policy, which mandates directors to notify the Company Secretary within two business days of any relevant changes to facilitate timely ASX disclosures.
Steps to Prevent Future Delays
Lakes Blue Energy described the late lodgments as isolated incidents and outlined measures taken to reinforce directors' obligations. The company has reiterated these responsibilities to its board members and intends to ensure strict adherence to ASX Listing Rule 3.19B going forward. This proactive stance aims to restore market confidence and avoid regulatory penalties.
While the company considers its current arrangements adequate, the episode underscores the challenges of maintaining flawless compliance in a complex regulatory environment. Investors and analysts will be watching closely to see if Lakes Blue Energy can sustain timely and transparent disclosures in future filings.
Implications for Market and Governance
Although the late filings have not been linked to any suspicious trading activity, the ASX's intervention serves as a reminder of the importance of rigorous governance practices, especially in the renewable energy sector where investor scrutiny is intensifying. The incident may prompt Lakes Blue Energy and peer companies to review their internal controls and director communication protocols.
For Lakes Blue Energy, maintaining trust with shareholders and regulators is critical as it advances its renewable energy projects. The company’s swift response and commitment to compliance are positive signals, but the effectiveness of these measures will only be proven over time.
Bottom Line?
Lakes Blue Energy’s compliance spotlight is a cautionary tale—future filings will reveal if lessons have been fully learned.
Questions in the middle?
- Will Lakes Blue Energy implement new technology or systems to improve director interest disclosures?
- Could ASX impose penalties or further scrutiny if late disclosures recur?
- How might this compliance issue affect investor confidence in Lakes Blue Energy’s governance?
