'John Moxon tried to sell Victoria Falls Hotel stake without board approval'

Tensions at Meikles Limited have reached a boiling point, as a group of four directors has accused the company's non-executive chairman, John Moxon, of attempting to sell the group's 50% stake in the Victoria Falls Hotel business without board approval, while pressuring board members to rubber-stamp his decisions.

The accusations were made in a statement released by the four directors - Rugare Chidembo, Stewart Cranswick, Simon Hammond, and James Mushore - who claim that Moxon is continuing to exercise control over the company in an executive capacity, despite stepping down from his role as executive chairman. The directors allege that Moxon's actions are not only undermining the board's authority but are also placing the company at risk.

In October 2024, Meikles announced the dismissal of CEO Malcolm Mycroft, replacing him with Moxon's son, Matthew Moxon. John Moxon, however, has claimed that this decision was made without his consent, suggesting that the move was done behind his back. He subsequently called for a meeting in December 2024 to remove the four directors from the board, intensifying the internal power struggle at the company.

The board's response to Moxon's moves has been strong. According to the directors, Moxon has accepted an offer from Alwardy, the Dubai-based investor that purchased Meikles Hotel in 2019 for US$20 million, to buy Meikles' shareholding in the Victoria Falls Hotel. The offer was reportedly similar to the amount paid for the hotel and was made without seeking approval from either the board or African Sun, Meikles' partner in running the Victoria Falls Hotel. The directors contend that Moxon accepted the offer unilaterally, without consulting the board or following proper corporate governance procedures.

The directors also claim that Mycroft, who had been CEO at the time, signed a Memorandum of Understanding (MoU) with Alwardy for the transaction. When questioned about this deal, Mycroft allegedly stated that he was not accountable to the board, but rather to Moxon, as the primary shareholder.

The four directors expressed concerns about Moxon's approach to governance, accusing him of attempting to bypass the board's authority and push through decisions without proper consultation. They argue that Moxon continues to treat the company as his personal enterprise, conflating shareholder and board matters. The directors stated:

"John Moxon expects the board to rubber-stamp whatever he has already decided. As directors of Meikles Limited, we have refused to do so. He conflates shareholders' issues and board issues, fusing them in himself. He is the board and the owner."

The directors also voiced concern over Moxon's continued influence, asserting that he has failed to transition from his former role as Executive Chairman to his current position as Non-Executive Chairman. They argued that his failure to adapt to a non-executive role has led to him making decisions traditionally reserved for the executive team, undermining the board's ability to function effectively.

"John Moxon has failed to transition from being Executive Chairman of Meikles Limited (which he was for a long time) to being Non-Executive Chairman and continues to make executive decisions and usurp the responsibility of the board," they stated.

The directors further argued that Meikles requires an independent chairman to ensure proper governance and accountability. They expressed concern that, left unchecked, Moxon would continue to accept offers to sell major company assets without following due process. The directors highlighted the fact that Meikles Consolidated, Moxon's company and the majority shareholder in Meikles, owes the company US$11.7 million, a debt that is due for repayment in June 2025.

The growing rift between the board and Moxon has raised serious questions about the future direction of the company, with the directors warning that Moxon's unilateral approach could endanger the company's long-term prospects. The outcome of the December meeting, where Moxon is expected to attempt to remove the four directors, could significantly impact the company's governance structure.

As Meikles faces these internal challenges, industry observers will be watching closely to see how the conflict is resolved and what this means for the company's future in the highly competitive hospitality and retail sectors.