SOUTH AFRICA – Old Mutual’s non-executive director, Nombulelo Moholi, has resigned from Board of the insurer’s South African-based subsidiary Old Mutual Life Assurance Company with immediate effect, according to an announcement
In an apparent blow to chairman Trevor Manual, Moholi, who chaired the remuneration committee, said she resigned for personal reasons.
Old Mutual, in a statement on the Stock Exchange News Service (SENS) said: “In compliance with rule 3.59 of the JSE Listings Requirements, Old Mutual announces the resignation of Ms Moholi as a non-executive director of the Company and Old Mutual Life Assurance Company (South Africa) Limited, as well as chairman of the remuneration committee of the Company, with effect from 18 September 2019 for personal reasons.
The board is currently consumed by a battle with on-again, off-again CEO Peter Moyo. Moyo has filed a legal action to have the board be declared in contempt of court for not allowing him back at work. He also wants the board to be declared delinquent.
He was dismissed due to material breakdown of trust and confidence relating to the handling of potential conflicts of interest. The issue surrounded investment firm NMT Capital, in which Moyo and Old Mutual both have an interest, and the payment of a dividend.
Moholi’s resignation may be interpreted as a sign of dissent within the board.
“The Chairman and the board expressed their deepest appreciation for Ms Moholi’s significant contribution to the success of the company. Ms Moholi wished the Board all the best during this difficult time, and stated that she was honoured to have had the privilege to serve as a director of the company over the last seven years.”
“Ms Moholi wished the Board all the best during this difficult time, and stated that she was honoured to have had the privilege to serve as a director of the company over the last 7 years,” Old Mutual said in a statement.
Nombulelo, is an independent non-executive director of Woolworths Holdings and Anglo-American Platinum. She was the group chief executive officer and executive director of Telkom South Africa. She also served as group executive of strategy, marketing and corporate affairs and on the executive committee of Nedbank.