Old Mutual's legal battle rages on, wipes out about 20% of market cap

The South Gauteng High Court has today reserved judgement in the case in which Old Mutual is challenging a previous interim court order that reinstated its former chief executive Peter Moyo. Simphiwe Mbokazi African News Agency (ANA)

The South Gauteng High Court has today reserved judgement in the case in which Old Mutual is challenging a previous interim court order that reinstated its former chief executive Peter Moyo. Simphiwe Mbokazi African News Agency (ANA)

Published Dec 5, 2019

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JOHANNESBURG - The South Gauteng High Court has today reserved judgement in the case in which Old Mutual is challenging a previous interim court order that reinstated its former chief executive Peter Moyo.

Old Mutual, South Africa’s oldest insurance company, approached the court to appeal Mashile’s judgement. Closing arguments in the two-day appeal hearing were finalised earlier today.

Speaking on the sidelines of the hearing Moyo said the case was not appeal-able, adding that he felt that the hearing went well.

“We brought the case to court because we believe that South African courts fundamentally work and we have faith in the justice system,” said Moyo.

Old Mutual ousted Moyo in June on a material breakdown in the relationship of trust and confidence.

“There are two things here my dignity and my contractual right. You don’t stand up to insult me and you don’t allow me to defend myself then you stand up to say that I was not fired for those reasons and you tell the world that this was misconduct,” said Moyo.

Moyo was reinstated by South Gauteng High Court Judge Brian Mashile who in July granted an interim order that he return to work citing that the termination of his contract was illegal and unlawful.

Moyo said that the court battle was also aimed at holding the Old Mutual board to account.

“We are actually saying the Old Mutual board needs to take full accountability for the actions for the way they act relative to what they have been asked to do by the shareholders,” said Moyo.

The legal battle has wiped out around 20 percent of Old Mutual market cap.

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