Van Hoog strikes again

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Businessman Nicholas van Hoogstraten says he forced CFI Holdings to postpone to a later date yesterday’s annual general meeting (AGM) after the group failed to give shareholders adequate time to look at the agenda items.

BY BUSINESS REPORTER

Van Hoogstraten is the second-largest shareholder in the company with 23%.

Speaking in Harare at the venue that was supposed to have the AGM, CFI Holdings chairperson Simplicius Chihambakwe said the company had breached some of the provisions of the Companies Act and the Zimbabwe Stock Exchange listings rules.

Chihambakwe said some of the circulars had not reached the shareholders on time.

“The way that was suggested and can be done is to postpone this meeting and have it published afresh naturally because of the limited time,” he said.

“We are required and have already filed for the postponement of the meeting. One of the authorities has agreed and the other one is being discussed with.”

The cancellation of yesterday’s meeting will leave the Zimbabwe Stock Exchange to provide answers why it had approved the holding of the AGM when the company was in breach of its rules.

Yesterday’s AGM was seeking shareholder approval to ratify the exceeded borrowings in 2014 and seek authority to borrow to a cap of not more than $20 million in 2015.

“The holdings company is mandated to borrow amounts not exceeding three times its capital and distributable reserves. The group engaged local financiers for land for debt swap and until it is achieved, the group will exceed the threshold stated in its articles and hence the requirement of ratification,” the group said in a circular.

The meeting was also expected to confirm directors’ fees, and receive and adopt financial statements for September 30 2014.

1 COMMENT

  1. I am not quite sure about the cause but it looks like once someone joins ZANU PF they cease to have the capacity to use their brain (assuming they had one in the first place). Has it ever occurred to Chinamasa that banks per se do not have money? What they have are investor’s and depositor’s funds. They must protect yet grow these funds to benefit their investors and giving it some war veteran who has no collateral (offer letters DO NOT qualify for obvious reasons) is a sure way of achieving the opposite. ZANU PF has set a precedents by writing off its own debts at every opportunity and unilaterally taking funds from private accounts at will. Look at the reserve bank debt saga, the youth fund saga only to list a few. Its as simple as this, you either have collateral or banks cannot help you, its the international norm, why are banks in Zimbabwe expected to dish out money to entities who are as likely as the sun rises going to default leaving the bank in quandary. Since the Chinese buy most of the tobacco why not ask the bank of China lend to the government of Zimbabwe which will in turn lend it to the so called new farmers and lets see how many seasons that arrangement will last!

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