The New Zealand Stock Exchange (NZX) has given Insured Group a three-month waiver to allow it to recruit another local director.

The problem arose when Chairman Bill Jeffries – one of the two New Zealand directors required to maintain the local listing – suddenly resigned on March 1.

Insured Group is a Perth-based insurance company with a listing on the NZX, and the majority of its shareholders (94.85%) live in Australia.

In a submission to the NZX requesting the waiver, Insured Group said Mr Jeffries’ resignation was beyond its control and had “been unexpected by the board”.

“Insured Group has a very small presence in New Zealand with its subsidiary, Lighthouse Financial Services, and has limited business dealings in New Zealand,” the insurer says in its submission.

“Consequently, there are no internal candidates who could be considered, and sourcing possible candidates and advancing this process will necessarily take some time.”

Insured Group also cited its proposed Australian Securities Exchange listing and capital raising as further difficulties in appointing another New Zealand director quickly.

“It is reasonable to expect a candidate to be hesitant about becoming a director before a public offer of securities is concluded without a detailed understanding of Insured Group’s operations,” the submission says.

“As the offer will be made in compliance with Australian legislation there could be additional reluctance from anyone with no previous experience with Australian offer documents to become a director of Insured Group.”

The waiver will expire on June 8.