OLD MUTUAL Open Letter To Shareholders On Termination Of CEO Peter Moyo Employment
Old Mutual has written an open letter to shareholders in an endeavour to address certain key matters of concern that have been raised in connection with the termination of employment of CEO, Peter Moyo. The letter which discusses four issues as shall be presented below comes as OML has fired its CEO Peter Moyo again.
1. The June 2019 notice of termination of employment
The letter notes that Moyo was served with a six months notice of termination of employment in June 2019 and the notice was in compliance with the notice period provided for in his contract of employment.
2. Further notice of termination
The letter also notes that irrespective of what might eventually happen in ongoing legal proceedings (Moyo’s appeal) following the June notice, a continued employment relationship between Moyo and Old Mutual was no longer possible.
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3. Incorrect and defamatory statements made by Mr Moyo or on his behalf
Old Mutual claims that Moyo made (in his person or represented) a number of claims in court proceedings and to the media that are incorrect and defamatory. The company also says Moyo will be appropriately held accountable for them.
3.1 The Board Chair’s legal fees
The letter also reveals that Old Mutual, at its own initiative, paid for two litigation cases to which the Board Chair (Trevor Manuel) was a party since the cases affected Old Mutual’s interests. Moyo, together with the shareholder at the time, Old Mutual plc, approved the decisions to manage these matters and to pay the legal expenses involved.
3.2 The “triple conflict”
The Board Chair’s relationship with Rothschild and Old Mutual plc were known and were disclosed and managed as required by the United Kingdom and South African laws and regulations and corporate governance best practice. This PLS was signed by all directors of OML, including Mr Moyo, who warranted that no misleading statements were made in the PLS.
3.3. Competence and standing of the Old Mutual Board
The letter dismisses as insulting, baseless, and defamatory the assertions by Moyo that when board members resolved to terminate his employment they were delinquent as directors under the Companies Act. The letter notes that OML Board is a group of highly skilled individuals from diverse backgrounds with a wide range of experience across many areas of business.
4. Where to from here?
Old Mutual lawyers have proposed expedited arbitration of those aspects that are suitable for arbitration, and the company will continue to explore and consider all reasonable alternative options open to end the disputes with Mr Moyo.
Read the full letter here: Old Mutual Open Letter to Shareholders on the termination of employment of CEO Peter Moyo
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