News / National
Nyambirai wins court battle to install directors on Pelhams board
19 Sep 2012 at 04:54hrs | Views
Tawanda Nyambirai won a vote to install directors on the Pelhams board, with the High Court having yesterday awarded him ownership of 35% shareholding he was contesting with chairman Oliver Chidawu. A written judgment detailing the reasons for the decision was handed down yesterday morning.
With Nyambirai holding 56% of the votes through TN Asset Management and Lifestyle Holdings, the outcome was a foregone conclusion. However, the resolutions challenged by Nyambirai with his proxies went to a poll. 17 proxies representing 89.35% of the shares in issue participated.
Had a judgment not been made on the 35% shareholding, the vote would have been close. Chairman Oliver Chidawu acquired the 118 million shares in the special bargain conducted by Lynton-Edwards Stockbrokers last Friday. Benjamin Balneves, owner of Tradewinds, reputedly sold the shares and withdrew his nomination to be a director.
With Chidawu absent, Nyambirai challenged the appointment of Simbarashe Mupandanyama as chairman on the grounds he was up for removal in terms of Article 5.1. CEO Oswald Masoha was appointed in his place.
The vote saw the appointment of Nyambirai, Rugare Chidembo, Alexander Gonese, Winston Makamure, Charity Chanetsa as directors with 63.2% in favour and the removal of Chidawu, and Mupandanyama by a margin of 63.2% to 18.2%. Florence Ziumbe, Doug Munatsi and Phineas Whata resigned from the board in July. Liberty Razunguzwa survived as a director with 81.8% in favour.
Old Mutual appeared to have abstained in the vote.
With Masoha acting as chairman, chief operating officer Isaiah Mukudu gave CEO's address, noting that since the group was in a closed period, he could not offer much detail in the trading update.
Mukudu said that with the company unable to access meaningful credit to fund the debtors book as a result of the shareholder dispute, sales in the 3 months to June 30 were 16% lower at $2.5 million when compared with Q1 in 2011.The sub-economic levels of business had resulted in losses on monthly basis.
Credit sales amounted to 68% compared with 77% at year end. Due to the lack of funding, sales on 12 month credit amounted to 6%, with the overall debtors book down 10% at $9million when compared with the past financial year.
Margins were tight, with the GP falling to 22.18% in Q1 from 30.01% last year. As a result of promotions and discounts, cash made up 32% of sales compared with 32% last year. Q1 unit sales fell to 3 561 from 3 856.
While branches were not adequately stocked, especially high end outlets, no branches were closed in the period. Mukudu said it was imperative the group was recapitalised sooner rather than later.
Shareholders approved directors fees of $38 040 and remuneration of $43 000 for auditors AMG Global. Ernst & Young were elected auditors for the year to March 2013.
With Nyambirai holding 56% of the votes through TN Asset Management and Lifestyle Holdings, the outcome was a foregone conclusion. However, the resolutions challenged by Nyambirai with his proxies went to a poll. 17 proxies representing 89.35% of the shares in issue participated.
Had a judgment not been made on the 35% shareholding, the vote would have been close. Chairman Oliver Chidawu acquired the 118 million shares in the special bargain conducted by Lynton-Edwards Stockbrokers last Friday. Benjamin Balneves, owner of Tradewinds, reputedly sold the shares and withdrew his nomination to be a director.
With Chidawu absent, Nyambirai challenged the appointment of Simbarashe Mupandanyama as chairman on the grounds he was up for removal in terms of Article 5.1. CEO Oswald Masoha was appointed in his place.
The vote saw the appointment of Nyambirai, Rugare Chidembo, Alexander Gonese, Winston Makamure, Charity Chanetsa as directors with 63.2% in favour and the removal of Chidawu, and Mupandanyama by a margin of 63.2% to 18.2%. Florence Ziumbe, Doug Munatsi and Phineas Whata resigned from the board in July. Liberty Razunguzwa survived as a director with 81.8% in favour.
Old Mutual appeared to have abstained in the vote.
With Masoha acting as chairman, chief operating officer Isaiah Mukudu gave CEO's address, noting that since the group was in a closed period, he could not offer much detail in the trading update.
Mukudu said that with the company unable to access meaningful credit to fund the debtors book as a result of the shareholder dispute, sales in the 3 months to June 30 were 16% lower at $2.5 million when compared with Q1 in 2011.The sub-economic levels of business had resulted in losses on monthly basis.
Credit sales amounted to 68% compared with 77% at year end. Due to the lack of funding, sales on 12 month credit amounted to 6%, with the overall debtors book down 10% at $9million when compared with the past financial year.
Margins were tight, with the GP falling to 22.18% in Q1 from 30.01% last year. As a result of promotions and discounts, cash made up 32% of sales compared with 32% last year. Q1 unit sales fell to 3 561 from 3 856.
While branches were not adequately stocked, especially high end outlets, no branches were closed in the period. Mukudu said it was imperative the group was recapitalised sooner rather than later.
Shareholders approved directors fees of $38 040 and remuneration of $43 000 for auditors AMG Global. Ernst & Young were elected auditors for the year to March 2013.
Source - zfn
