Why Did Linius Technologies Delay Disclosing a Director’s Interest?
Linius Technologies has addressed a late filing of a director's interest notice, attributing the delay to an administrative oversight involving a new class of securities. The company has updated its processes and will re-brief directors to ensure future compliance.
- Late Appendix 3Y filing due to administrative oversight
- New class of securities caused notification gap
- Company updated disclosure processes
- Directors to be re-briefed on disclosure obligations
- ASX compliance concerns addressed proactively
Background on the Disclosure Delay
Linius Technologies Limited (ASX – LNU), a player in the technology sector, recently responded to an ASX query regarding the late lodgement of an Appendix 3Y notice. This notice relates to a change in the notifiable interest of one of its directors, Mr Brent Jones. The change occurred on 12 September 2025, but the corresponding disclosure was only lodged on 29 September 2025, beyond the five-business-day deadline stipulated by ASX Listing Rule 3.19A.
Cause of the Delay and Company Response
The company attributed the delay to an administrative oversight linked to the issuance of a new class of securities. Unlike standard shares, this new security class was not tracked by the company’s share registrar, which led to a failure in timely notification. Linius acknowledged this gap and has since updated its internal processes to ensure that all new classes of securities are promptly considered for compliance with disclosure rules.
Governance and Compliance Measures
Linius Technologies confirmed that it maintains agreements with its directors requiring them to disclose changes in their interests to the company, enabling compliance with Listing Rule 3.19A. The company emphasized that directors are expected to inform it of transactions affecting their notifiable interests, while the company relies on its systems to monitor corporate actions. To reinforce compliance, all directors will be re-briefed at the upcoming board meeting on their disclosure obligations under Listing Rules 3.19A and 3.19B.
Regulatory Context and Market Implications
The ASX’s inquiry highlights the importance of timely and accurate disclosure of director interests to maintain market transparency and investor confidence. While Linius’s explanation and corrective actions appear adequate, the incident serves as a reminder of the complexities introduced by new financial instruments and the need for vigilant governance. The company’s proactive stance in updating processes and reinforcing director responsibilities should mitigate the risk of future breaches.
Looking Ahead
Investors and market watchers will be keen to observe whether Linius Technologies can maintain strict compliance going forward, especially as it navigates the evolving landscape of securities and corporate governance. The company’s ability to swiftly address the ASX’s concerns without resorting to trading halts or suspensions is a positive signal, but ongoing scrutiny is likely.
Bottom Line?
Linius Technologies’ swift response to its disclosure lapse underscores the critical need for robust governance amid evolving securities structures.
Questions in the middle?
- Will Linius face any penalties or further regulatory scrutiny from the ASX?
- How will the new class of securities impact future disclosure and investor perception?
- What additional governance measures might Linius implement beyond re-briefing directors?
