August 21, 2021

Updated March 08, 2019 17:30:59 The Australian cloud software company CloudX has said it is investigating the behaviour of its chief executive as the company faces questions over a breach of its corporate policies.

Key points:CloudX chief executive John Darnell is under investigation for allegedly failing to report breaches of its policiesCloudX CEO John Dornell was also allegedly involved in a corporate fraud schemeThe company says he “has not been involved in any wrongdoing or contraventions” since SeptemberThe company’s CEO John Stiner said Mr Darnel was suspended for breaching the company’s corporate policies, which were brought in to stop the company from failing to comply with a “customer agreement”.

“John has not been engaged in any violation of any applicable corporate rules or regulations,” a company statement said.

“The breach of the Customer Agreement occurred in September of 2018 and was subsequently reported to the company by the Australian Competition and Consumer Commission (ACCC).”

Mr Darnett has been suspended for the duration of this investigation.

“In a statement released on Thursday, the company said Mr Stiner had “received a number of complaints about Mr Dornett’s conduct” but declined to elaborate.”

Our investigation is ongoing and we are working with law enforcement to fully understand the facts,” it said.

The investigation was triggered after it was alleged Mr Durnell was involved in another corporate fraud scam, which was later investigated by the ACCC.

Mr Stiner has denied all the allegations and said he was not involved in the scheme.”

I have not been in any breach of any corporate rules.

I have not received any money from any entity and no money from anyone, other than myself,” he said in a statement.”

In the course of my business I have received and paid out over $3 million to customers and I have never received any payments for anything.

“He said he believed he had not breached the law by failing to disclose breaches to customers.”

We are continuing to work with the ACCCC to fully investigate this matter,” the statement said, adding that the company would provide a statement later on Thursday.

The ACCC is investigating Mr Stiller’s conduct, which is being overseen by the Attorney-General’s Department.

In a letter sent to Mr Stocker on Thursday morning, it said it was “committed to taking appropriate action to ensure that all customers are fully satisfied”.”

The ACCCC is also committed to taking steps to ensure customers have confidence in the ACCCs ability to investigate and prosecute these matters and that breaches are appropriately remedied,” it added.

Mr Dornel is currently on leave from his role at CloudX, which has more than 100 employees.

He was first employed as a director of the company in 2016, with his duties included overseeing the development of the cloud computing platform.

The Australian Competition & Consumer Commission said it would not comment on its investigations but it is reviewing the allegations.”

As part of its investigations, the ACC has been seeking information from Mr Stoner, and we will provide an update when we have received it,” the commission said in an email to ABC News.

MrStiner, who has been in his role since 2016, is also one of the key figures behind the Australian Government’s “cloud to the home” initiative, which aims to make Australia more attractive for digital companies to take over their own services.

CloudX was established by former Microsoft co-founder Paul Allen.

It has more then 300 employees, which makes it one of Australia’s biggest cloud companies.

Cloudx’s revenue rose 11 per cent in 2018, compared to the year before.

Its stock has risen 14 per cent this year.


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