malvernmugadzikwa
Business Writer
The Zimbabwe Stock Exchange (ZSE) has taken the unprecedented step of suspending the trading of Meikles Limited shares effective November 26th, 2024 amidst a growing corporate governance crisis at the century-old company, triggered by a contentious board meeting on October 1st, 2024.
The boardroom battle
The heart of the dispute lies in the removal of the former CEO, Malcolm Mycroft, and the subsequent appointment of Matthew Moxon, the son John Moxon (Moxon), the chairman and largest shareholder of Meikles. Moxon has vehemently slammed the process, alleging that the board meeting was “highly irregular” and that the decision to remove Mycroft was not included on the agenda.
Mycroft’s ouster: Performance issues or power play?
While Moxon vehemently defends Mycroft’s performance, reports suggest the former CEO may have been under scrutiny for alleged financial improprieties and bypassing board approval for key decisions.
However, Moxon dismisses these claims as “spurious” and suggests the board’s actions were motivated by a power grab rather than legitimate concerns.
The stakes are high: Reputation, revenue, and legacy
Meikles Limited derives a staggering 98 percent of its revenue from its TM Pick n Pay division, a success Moxon credits to Mycroft’s leadership. He warns that Mycroft’s removal could have “negative consequences for shareholders” and potentially damage Zimbabwe’s business environment by discouraging foreign investment.
Taking the fight to the shareholders: The EGM gambit
Unwilling to back down, Moxon has called for an Extraordinary General Meeting (EGM) to remove four board members deemed responsible for the alleged improper CEO removal, along with the company secretary.
This bold move suggests Moxon is prepared to fight for control of the company, potentially reshaping its leadership structure and future direction.
The ZSE steps in
Adding another layer to this corporate drama, the ZSE intervened by halting trading of Meikles Limited shares. Justin Bgoni, the ZSE CEO, cited the need for the company to address “corporate governance concerns” as justification for the suspension. This move highlights the seriousness of the situation and potential damage to investor confidence.
A family legacy and a company’s future hang in the balance
The Meikles saga extends far beyond a simple boardroom dispute. It raises questions about the future of a company steeped in Zimbabwean history, the Moxon family’s legacy, and the importance of sound corporate governance. As the EGM approaches, stakeholders, including Pick n Pay, shareholders, and potential investors, anxiously await the outcome, wondering who will emerge victorious in this high-stakes power struggle.
Bongani Ndlovu