Sign up for regular news, views and insights about corporate governance

Name
Email
Company
Job title
Industry

Close

Setting the benchmark in corporate integrity

Tech Data delays annual report after regulator questions

US-based technology wholesaler made to delay the publication of its annual report after questions are raised about accounting practices of its UK subsidiary

Tech Data Corporation, the US-based wholesale distributor of technology products, has been forced to delay the filing of its latest annual report after regulators queried the projected results from its previously issued financial statements over the last three years.

The US Securities and Exchange Commission had earlier in March raised concerns regarding the reporting over the last three years of the company, and specifically statements made by the firm’s UK subsidiary’s accounting practices. It is thought that the concerns centre on the quarterly and annual financial statements for 2011 and 2012.

Tech Data, which is headquartered in the Tampa Bay area, says it is likely that the adjusted financial statements will see net income drop by around $25m to $33m over the three years. Previous financial statements had shown the company had net income of $206.4m for the 12 months ending on 31 January. The firms Audit Committee of the Board of Directors said it would be restate the financials after discussing the matter with accounting firm Ernst & Young.

The company has also begun an internal investigation about how the irregularities might have come about. Because of this investigation, the company says it is unsure of when it will be ready to file its latest annual report.

Tech Data also expects NASDAQ’s Listing Qualifications Department to contact it with regards to its late report filing, although it maintains that its stock should remained listed and tradable on the stock exchange.

Founded in 1974, Tech Data has grown to be one of the leading wholesale distributors of technology products in the world, with $24.4bn net sales reported in 2011, with 125,000 resellers in over 100 countries. It is also ranked 109th on the Fortune 500 list of America’s largest corporations.
The firm’s CEO, Robert Dutkowsky, said in a statement after the initial concerns were raised by the SEC: “We are working diligently to resolve this matter as soon as possible.”

 

News

Norway appoints corporate governance board

In a bid to become a more active investor, Norway has appointed a corporate governance advisory board to help oversee its $760bn sovereign wealth fund

Gulf Keystone Petroleum clash with top investor over structure demands

City investor M&G has ruffled feathers at Gulf Keystone after telling the oil company it needs to appoint non-executive directors to its board

Nigeria to implement corporate governance code by 2014

New code will centralise corporate governance practices and ascribe penalties for lack of compliance

ASEAN governance framework established

The results of the first-ever ASEAN Corporate Governance Scorecard have been released, in an effort to establish greater international visibility

Should defined contributions be re-distributed?

Both the OECD and the House of Lords have criticised the now widely-used defined contributions plan for not accommodating adequate savings unless employees are high earners

Gunaxi: Bribe or gift?

The efforts of multinational companies to do business in China is marred by the tradition of Gunaxi – the concept of courting clients and networking that traditionally involves gift giving

Japanese companies urged to reconfigure governance

A recent survey has indicated that investors are dissatisfied with the current system of governance commonly undertaken by Japanese companies, many urging for more comply-or-explain systems equivalent to that of EU-based companies

Commission propose fundamental changes to German Corporate Governance

The Government Commission for the German Corporate Code has, in February of this year, proposed a series of changes it believes will greatly improve the current upholding of corporate governance

We, the corporations?

Luigi Zingales on the possibility of a mandatory disclosure rule

ASIC pushes ahead with annual report reforms

Australian regulator demands more information on strategy from public companies in their annual financial statements

Boards under threat as shareholders demand more power

Activist shareholders demand right to action by written consent, but risk undermining board authority

‘Lack of clarity’ in UAE corporate governance

Report raises concerns over listed companies failing to provide clear corporate governance policies

Community spirit

Research has shown that companies giving back to the communities in which they work tend to enjoy better long-term results

Moody’s appoints new head of internal audits

New vice president of internal audit will be in charge of corporate governance, risk management and internal control processes