Photo by Simphiwe Mbokazi
Johannesburg - Allan Gray on Monday said it has called a shareholders’ meeting at Group Five to attempt to change the board structure.

The meeting is scheduled to take place on July 24.

Chief Investment Officer, Andrew Lapping said they have lost faith in Group Five’s current board to act in the best interest of all stakeholders, given their unsatisfactory response following the large number of resignations from key individuals in recent months.

They have been unable to regain our trust following numerous meetings and engagements.

Lapping said: “our motivation is not related to Group Five’s strategy, involving the unbundling of assets, or otherwise”.

Read also:  Group Five: Directors to tender resignations 

“We simply want a board that is independent with the relevant skills that will protect and grow value for all stakeholders.”

Lapping said they suggested nominations which will result in a more transformed board.

“We believe that Mike Upton, as one of our five candidates nominated, meets the criteria. Mike was recognised for proactively initiating the investigation into industry collusion.”

He said under Upton tenure, Group Five was rewarded for this proactive action with the granting of amnesty and did not have to pay any punitive fines.

The existing board supported Mike Upton when they were non-executives during his tenure.

“It is our opinion that a new non-executive board will be able to propel the company forward and ensure Group Five continues to play an important role in the future of South Africa,” Lapping said.

 BUSINESS REPORT ONLINE