A management shake-up ,looms at the Zimbabwe Stock Exchange which is set to hold an extraordinary general meeting (EGM) to elect new board members following the dissolution of the interim board on Monday.
BY VICTORIA MTOMBA
The interim board, chaired by Standard Association of Zimbabwe director Eve Gadzikwa, was mandated to lead the demutualisation of the exchange, a development that resulted in the separation of ownership of the exchange in line with internationally accepted codes of corporate governance. ZSE demutualised in March resulting in stockbrokers owning 68% and the remainder owned by government.
Sources told NewsDay the ZSE held an annual general meeting (AGM) on Monday and the interim board was dissolved as it had met its mandate of demutualising the local bourse.
“The EGM is scheduled for July 24 this month and the new board is expected to start on August 1. The new board will be going forward with a number of strategies and will address few management issues,” the sources said.
Other members of the interim board were Peter Shoniwa, Tsitsi Mbabvu, Vimbai Nyemba, Benson Gasura, Mary Takavarasha, ZSE chief executive officer Alban Chirume and Naboth Machemedze.
Before the demutualisation, ZSE was owned by stockbrokers and run as a mutual society. It is now a private limited company.
“The EGM will result in the shareholders appointing directors and adopting articles of association and memorandum of the new company. Brokers are expected, through the meeting, to elect people who can represent them well and assist them in addressing some of the challenges they are facing. Management might change as well as the ZSE is now a private limited company,” a source said.
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The interim board was appointed by the then Finance minister Tendai Biti so as to have independent people supervising the ZSE, not the brokers.
Sources said the fate of senior managers would be sealed when the new board takes over. There have been misgivings as the bourse continued scoring own goals.
Earlier this year, ZSE was in the eye of a storm when it suspended Meikles Limited from trading without following proper procedures. The suspension was lifted after one week.
ZSE was also accused of having allowed CFI Holdings to go ahead with an annual general meeting when it was in breach of it rules. The AGM was postponed after one of the shareholders Nicholas van Hoogstraten blocked the meeting. It is understood that ZSE management got a tongue-lashing from its regulator, the Security Exchange Commission of Zimbabwe, for having slept on the wheel.
