E&P Financial Group has announced director Tony Johnson will move into a non-executive capacity next year, meaning chief executive Ben Keeble will be the only executive remaining on the board.
Johnson, who previously spent 23 years at consultancy EY, joined E&P in June 2022 as an executive director with the responsibility of identifying and capturing growth opportunities across the group.
In an ASX statement, the firm said Johnson will transition to a non-executive director from next year.
“EP1 and Johnson have agreed to vary the terms of Mr Johnson’s Employment Agreement such that his employment will end on 31 December 2024 without the need for a three-month notice period. Johnson will remain as a director of the company, albeit in a non-executive capacity with effect from 1 January 2025.”
The change means all directors on the board, with the exception of chief executive and managing director Keeble, now hold non-executive positions.
According to the Australian Institute of Company Directors (AICD), executive directors are employees of the company whereas non-executive directors are usually independent of corporate management, are not bound to give continuous attention to the corporation’s affairs, and have intermittent duties.
This includes founder David Evans who transitioned from chairman to non-executive chairman at the same time as Johnson joined.
“While I will be stepping back from day-to-day executive duties, I will remain a substantial shareholder and actively involved in the strategic direction of E&P as non-executive chairman,” Evans said.
The other members of the board include Sally McCutchan and Josephine Linden as independent non-executive directors.
Last month, the firm announced it will delist from the ASX, just six years after first listing in 2018. Having received shareholder approval on 1 November, the delisting is due to take place on 27 December. However, the vote only narrowly passed, with 76 per cent of shareholders voting in favour when it required a 75 per cent approval.
It is also the subject of an inquiry by the Senate economics references committee into the collapse of wealth management companies, including Dixon Advisory, which is due to publish a final report in March 2025.
This will discuss:
- The underlying cause of the collapse of wealth management companies such as Dixon Advisory.
- How the actions of directors of wealth management companies and related entities, senior management and individual advisers contribute to the collapse of these companies.
- The role of the financial services regulatory regime in the context of how matters involving the collapse of an investment product promoted by a vertically integrated business are assessed and how fault is attributed.
- Evaluation of the placement of wealth management companies into administration and the related insolvency issues, including with respect to the appropriateness of actions by directors and senior management and the transfer of advisers and clients to a related party entity for no consideration.
- Assessment of the period for which wealth management companies can remain as a member of the Australian Financial Complaints Authority.
- The role of Australian Securities and Investments Commission (ASIC), including providing consumer information to investors affected by corporate collapse and consideration of the most appropriate arrangements for future cases of insolvency.
- ASIC’s role in investigating corporate collapse and the appropriateness of any regulatory intervention that may reduce scale of loss for consumers.
- Options for enforcement action, including litigation, that ASIC has available in relation to wealth management companies following collapse.
- The implications of the collapse of wealth management companies on the establishment of the CSLR, including with respect to design considerations and the potential implications for future matters.
- And any other related matters.
