Tehillah Niselow and Lameez Omarjee
Old Mutual and Peter Moyo go head to head at court today over whether Moyo can be reinstated as CEO with immediate effect pending an appeals process.
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Moyo vs. Old Mutual: 5 reasons why the corporate warfare continues
Moyo and the country’s second largest insurer have different interpretations of the initial court ruling and have turned once again to the courts as the fight becomes increasingly acrimonious.
Here are 5 reasons why neither side is backing down, despite concerns about the impact of the uncertainty on investors.
1. Undue Haste
Moyo claims that the Old Mutual board meeting which decided to appeal the court judgment on July 30 was “unlawful and improperly constituted”. In his affidavit to the court submitted on Monday, Moyo describes that prior to the board meeting, he called the CFO, Casper Troskie, and informed him that it would be unlawful to hold a board meeting without extending an invitation for him to attend.
“Undue haste was intended, by hook or crook and even before any careful analysis of the judgment, simply to block my return to work as ordered by court,” Moyo states.
2. Contempt of Court
Moyo will ask the High Court to declare the Old Mutual directors in contempt of court for failing to reinstate him immediately after the July 30 ruling. “The Old mutual board was not permitted to ignore and fail to implement a court order, simply because it does not agree with it,” Moyo’s affidavit reads.