CleanTech Lithium has suspended chief executive Aldo Boitano after he failed to disclose a loan that used his holding in the Chile-focused group as collateral.
According to CleanTech, between 8 September 2023 and 6 February 2024 Boitano transferred his entire holding of 9.4 million shares to a custodian account nominated by the lender.
Boitano is not able to ascertain the extent to which these shares might have been transferred to a further nominee account in the name of the lender or even sold by the lender, added the statement.
“The granting of security and subsequent transfers of Ordinary Shares are considered notifiable events which should have been notified by Mr Boitano to the company at the relevant time,” said the statement.
CTL’s board has launched an investigation and Steve Kesler, currently executive chairman, has also assumed CEO responsibilities.
Personal loans backed by shareholdings of executives in their own company are controversial as often they become effectively share sales or else can mean there is a longstanding overhang on a share price.