Elmer Funke Kupper the Managing Director of ASX Ltd resigned following 4 ½ years leading the company as police continue an investigation into activities of an Australian betting company in Cambodia that he formerly was in control of.
Rick Holliday-Smith the Chairman at ASX said the Funke Kupper had wanted to put full focus into the ongoing investigations that could be made.
Holliday-Smith will hold the role of executive chairman, while the company searches for a replacement for Funke Kupper.
Funke Kupper was the head of Tabcorp Holdings from 2007 to 2011 prior to joining ASX. On March 15, it was reported by Fairfax Media that Tabcorp had made an A$200,000 payment equal to $152,000 while seeking a license for online games in Cambodia during the early part of 2010.
Funke Kupper was the CEO at Tabcorp when the payment had been made. According to that report, Funke Kupper was looking into how the company could expand to become a player in the Asian sports betting market.
On Monday, in another separate statement, Tabcorp had granted a request by Funke Kupper for leave as one of its directors until the investigation by the police has ended.
Tabcorp announced last week that police started their probe into the exploration of the company of an opportunity to do business during 2009 in Cambodia.
Tabcorp did not pursue that opportunity said a spokesperson.
An analyst in the industry said that corporate governance is an important thing and people must have faith as well as trust in the market. He added that it was logical that ASX let Funke Kupper go, as it was something he felt he needed to do.
The departure by Funke Kupper from ASX comes during a time of increased consolidation amongst global exchanges. Last week, the London Stock Exchange came to an agreement to be acquired by Deutsche Boerse AG, in a deal that might kickoff a big bidding war.
The two together would create the largest exchange operator in the world by revenue and the world’s second largest using market value.