JOHANNESBURG – Old Mutual chairperson Trevor Manuel on Friday broke his silence on the ongoing litigation between the group and Peter Moyo, describing the decision by the South Gauteng High Court to reinstate the axed chief executive as a headache for corporate governance.
Manuel told journalists in Parktown, Johannesburg, that the court decision had far-reaching consequences beyond the country’s oldest insurer.
“(We are) unanimously of the view that that judgment is so bad for the company and company law that we have an interest in ensuring that it is overturned on appeal. That is not something we can walk away from. It is a corporate responsibility we have as Old Mutual. It creates a massive headache in the corporate governance space,” said Manuel, who was flanked by members of the executive.
In July, Judge Brian Mashile ruled that Moyo be temporarily reinstated and that the insurer’s decision to suspend and subsequently dismiss him was unlawful.
Mashile also interdicted the 174-year-old company from appointing Moyo’s replacement. Moyo was suspended in May as trust and confidence between him and Old Mutual broke down.