The Corporate Travel Management Ltd (ASX: CTD) share price has edged higher this morning after the corporate travel specialist responded to a recent media report.
At the time of writing the company's shares are up 0.5% to $24.60.
What was the media report?
Late on Monday the AFR pointed out that the personal investment company of Corporate Travel Management's CEO, Jamie Pherous, had been deregistered by the Australian Securities and Investments Commission.
This action was taken after Pherous Holdings Pty Ltd, which holds over $500 million of the company's shares on behalf of Mr Pherous, failed to pay the corporate regulator its annual fee of $262 since 2016.
The report also points out that Section 601AD of the Corporations Act decrees that all property of a deregistered company vests in ASIC until such time it's reinstated. This effectively meant that Mr Pherous' 20.74 million shares were now the property of ASIC.
What was the company's response?
This morning the company responded to the report and revealed that Mr Pherous has advised that "he will lodge the appropriate paperwork and outstanding fees as a priority this morning to seek reinstatement of his personal investment company."
It also confirmed that the CEO "has not sold any CTD shares and has no intention to do so."
Should you invest?
Whilst this oversight was a touch sloppy, I don't believe it should impact any investment decision in the company's shares.
But having said that, I believe it might be best to wait for the company's full year results before making an investment. The reason for this is that I don't believe short sellers are finished with Corporate Travel Management just yet and fear another short seller report could weigh heavily on its shares.
So, for now I would suggest investors gain exposure to the travel booking industry through Helloworld Travel Ltd (ASX: HLO) or Webjet Limited (ASX: WEB).
