HomeBusiness DigestStrike robs shareholders of voting rights

Strike robs shareholders of voting rights

Shakeman Mugari

SEVERAL Clan Holdings Ltd (Clan) shareholders failed to exercise their voting rights because they did not receive their allocations on time for the cut-o

ff date because of the on-going Zimpost strike.

The Zimpost strike has been dragging on for almost a week, seriously disrupting the plans of most small-scale shareholders resident out of Harare.

One such stranded shareholder is Canissius Nyakonda who is based in Shurugwi.

Nyakonda says he holds more than 22 000 Clan shares on the stock market and is planning to come to Harare to have the matter solved.

“The bulk of the allocation letters were stuck in the box. Shareholders living in the outskirts of Harare did not get the letters because of the postal strike,” said an angry Nyakonda who is planning to travel to Harare to have the case solved in court.

According to Nyakonda, contacts with all responsible authorities had not yielded anything.

The cut-off point for the rights issue offers was Friday last week and the shares were listed on Tuesday.

The shareholder told businessdigest that he has since launched a complaint with Stanbic Bank Zimbabwe who acted as the underwriter, receiving bank and principal bankers of Clan.

Nyakonda has also complained to Imara Edward Securities (Pvt) Ltd who acted as the lead sponsoring brokers in the just-ended transaction.

Mark Warhurst, Clan legal advisor said the issue was beyond the company’s control.

“It’s a postal problem that the company had no control over. There was a cut-off point for the shares,” said Warhurst.

“It is incumbent upon people who want to follow their rights to ensure that their offer letters are received and not posted before the closing date.”

A senior official in Stanbic’s wholesale banking division confirmed that the bank had received complaints from some Clan shareholders.

“It’s not many people who called on the issues,” the official said. “It is probably a few individuals from areas outside Harare. Otherwise the rights issue went on very well given the circumstances.”

Some disadvantaged shareholders said Stanbic should have made payment arrangements at branch level to cater for the outsiders.

According to the Clan circular to shareholders, the letters of allocation were posted on November 3.

Zimbabwe Stock Exchange chief executive officer Emmanuel Munyukwi was not available to comment on the issue.

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