QEX has not made any submissions regarding costs but has noted that it has
limited financial resources at this time and that the recent Covid-19 lock-down
in Auckland has heavily impacted its operations. While it has not been
suggested that the global pandemic contributed to the breaches in this case,
there is no doubt that a Covid trading environment has resulted in a fast paced
and complex commercial environment where QEX and other companies must
make key business decisions at speed and when it may be difficult to predict
prospective market conditions. A small and closely held Listed entity, reliant on
external advisors, may be stretched and vulnerable in this environment.
Mistakes can be made but these breaches are consistent with a persistent
pattern of poor systems in place. That said, the Tribunal is mindful that
financial deterioration due to Covid trading conditions may be a factor in QEX’s
ability to pay its fine and costs at this time46.
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