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SEC Charges Independent Director and Ex-CEO of Church & Dwight With Concealing Close Friendship With Company Executive

SEC Charges Independent Director and Ex-CEO of Church & Dwight With Concealing Close Friendship With Company Executive

美國證券交易委員會指控教堂與戴德公司獨立董事和前首席執行官隱瞞與公司高管的親密關係
newsfile ·  2024/10/01 05:47

Washington, D.C.--(Newsfile Corp. - September 30, 2024) - The Securities and Exchange Commission today announced settled charges against James R. Craigie, a former CEO, Chairman, and board member of Church & Dwight Co. Inc., for violating proxy disclosure rules by standing for election as an independent director without informing the board of his close personal friendship with a high-ranking Church & Dwight executive thereby causing Church & Dwight's proxy statements to contain materially misleading statements. Without admitting or denying the SEC's allegations, Craigie agreed to resolve the SEC's charges. If the settlement is approved, Craigie will be subject to a five-year officer-and-director bar.

華盛頓特區 -(Newsfile corp - 2024年9月30日)- 今日,證券交易委員會宣佈對原教會與德威公司的CEO,董事長和董事詹姆斯·R·克雷基提起的一案做出了解決,原因是他違反了代理披露規定,未向公司董事會透露其與高級教會與德威高管的親密友誼,從而導致公司的代理聲明包含虛假陳述。克雷基未承認也未否認SEC的指控,同意了解決SEC的指控。如果和解獲得批准,克雷基將接受爲期五年的官員和董事禁令。

The SEC's complaint, filed in U.S. District Court for the Southern District of New York, alleges that, between January 2020 and March 2023, Craigie maintained a close personal relationship with a member of Church & Dwight's executive team. Among other things, Craigie frequently vacationed with the executive and the executive's spouse, including six trips that spanned eight countries on five continents. Craigie paid more than $100,000 for them to join Craigie and his spouse on several of these international vacations. According to the SEC's complaint, Craigie never disclosed his relationship with the executive to Church & Dwight and he allegedly encouraged the executive to conceal the relationship as well. As a result, the company's board was unaware of Craigie's personal relationship with the executive, and the company's proxy statements subsequently identified Craigie as an independent director. Craigie ultimately served as an independent board member from 2019 to 2023. When Church & Dwight began a CEO succession process, Craigie allegedly shared confidential details about the process with the executive and took steps to better position the executive for succession in the future. Once Church & Dwight learned of Craigie's relationship with the executive, it determined that he was not an independent director.

SEC的控訴在美國紐約南區地方法院提起,指控稱,在2020年1月至2023年3月期間,克雷基與教會與德威公司高管團隊成員保持了親密私人關係。克雷基經常與該高管及其配偶一同度假,包括八個國家和五大洲的六次旅行。克雷基爲他們參加數次國際度假支付了超過10萬美元。根據SEC的控訴,克雷基未向教會與德威公司披露與高管的關係,據稱他還鼓勵高管隱瞞這段關係。因此,公司董事會不知情於克雷基與高管的個人關係,公司的代理聲明隨後將克雷基確定爲獨立董事。克雷基最終擔任了2019年至2023年的獨立董事。當教會與德威公司開始CEO接班過程時,克雷基據稱與高管分享了有關過程的機密細節,並採取措施更好地推動高管未來接班。一旦教會與德威公司了解到克雷基與高管的關係,確定他不是獨立董事。

"Shareholders expect independent directors to exercise autonomous judgment in their decision making, free from undisclosed conflicts," said Mark Cave, Associate Director of the SEC's Division of Enforcement. "By concealing his relationship with a company executive, Mr. Craigie undermined the board's director independence process and compromised the company's disclosures."

「股東們希望獨立董事在做決定時能夠行使自主判斷,免受未披露的利益衝突影響,」美國證券交易委員會執法部副董事Mark Cave說。「通過隱瞞與公司高管的關係,Craigie先生破壞了董事獨立性程序,並損害了公司的披露。」

Without admitting or denying the allegations, Craigie agreed to be permanently enjoined from further violations of the proxy provisions of the Securities Exchange Act of 1934, pay a civil penalty of $175,000, and a five-year officer-and-director bar. The settlement is subject to court approval.

Craigie在不承認或否認指控的情況下,同意永久禁止再違反1934年證券交易法的代理規定,支付17.5萬美元的民事罰款,並被禁止擔任公司董事長五年。協議需要法庭批准。

The SEC's investigation was conducted by Elliot Weingarten and James Valentino, assisted by Tonya Tullis and David Nasse, and supervised by Sarah Lamoree, Jeffrey Weiss, and Mr. Cave.

美國證券交易委員會的調查由Elliot Weingarten和James Valentino負責,Tonya Tullis和David Nasse協助,由Sarah Lamoree、Jeffrey Weiss和Cave先生監督。

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