Construction and engineering giant Group Five said on Friday that five directors will resign next month, including chairwoman Philisiwe Mthethwa, ahead of the extraordinary general meeting called by one of its major shareholders. This comes after fund manager Allan Gray, whose clients hold 25percent of the construction company, said last month that it had lost faith in Group Five’s board.
Allan Gray further called for an extraordinary general meeting to reconstitute the board, saying the company needed “a fresh start” following an exodus of numerous executives and directors. The meeting will be held at Group Five’s offices in Johannesburg on July 24. Group Five has seven members on its board. Group Five said that as a result of the proposed reconstitution of the board, Mthethwa and independent non-executive directors Kalaa Mpinga, Justin Chinyanta, Willem Louw and Vincent Rague, will resign on that day.
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Mthethwa is the chief executive of the National Empowerment Fund and wife of Arts and Culture Minister Nathi Mthethwa. She is also the sister of Deputy Finance Minister Sfiso Buthelezi. Group Five said the record date for determining which shareholders were entitled to participate in and vote at the extraordinary general meeting was July 14.