The WiseTech Global Ltd (ASX: WTC) share price is up after giving an update about its board of directors.
WiseTech is a global tech business that offers CargoWise, which is software used by various large logistics customers around the world.
WiseTech board update
The company gave investors an update about its compliance with ASX listing rules.
As previously announced when it released its result at the end of February 2025, due to the resignation of four directors, the company only has two independent directors and therefore is not able to satisfy the ASX listing rule that its audit and risk committee has at least non-executive/independent directors.
WiseTech noted that its audit and risk committee did have enough directors when its half-year financial statements were approved and up to the date the resignations took place, effective 26 February 2025.
Currently, the audit and risk committee is comprised of interim Chair Charles Gibbon and Mike Gregg. The ASX tech share pointed out that Charles Gibbon was the chairperson of the audit and risk committee before WiseTech’s listing on the ASX and continued as a committee member after listing.
In the next week, the new audit and risk committee will meet to receive a briefing from the auditor, the interim CEO (who was previously the chief financial officer) and the interim chief financial officer to “open a line of communication” regarding any accounting judgements, financial disclosures and audit-related matters.
What next?
WiseTech’s board intends to appoint additional independent directors “as soon as practicable” and expects at least one appointment will happen within four weeks.
This should enable the audit and risk committee to become compliant with the ASX’s listing rule again, well before the FY25 result comes under consideration.
Is the WiseTech share price a buy?
That’s certainly a key question. It’s 30% cheaper than it was a month ago, so that’s more appealing.
There are clearly governance issues that need to be addressed, and the loss of four independent directors wasn’t a good look.
It’s possible that WiseTech’s customers don’t care about what’s happening. If profit rises at the same speed but the WiseTech share price is cheaper, then this may well be a (somewhat) contrarian opportunity to invest.
However, it could be some time before WiseTech shares trade at the same price/earnings (P/E) ratio as before, if ever. The company will need to demonstrate its operations and performance are unaffected by what’s happening.
There are other ASX growth shares without the ESG problems, though there are few businesses on the ASX with the global market position and outlook as WiseTech.
