THE dispute over the ownership of Capital Alliance (CA) this week deepened with revelations that Norman Sachikonye, the former chief executive of First M
utual Ltd (FML), is now demanding back his shares in line with a High Court order delivered in December last year.
Justice Anne Gowora ruled that Sachikonye be given back his shares in CA. The other CA directors had dispossessed Sachikonye of his 26% stake on the basis that he had ceased to be part of the management empowerment group when he left FML in June 2004.
The CA directors led by the then FML chief executive, Douglas Hoto, had distributed Sachikonye’s shares amongst themselves.
Hoto and the other three directors who included Noel Biti (10%), Sheila Lorimer (1,20%) and Pelagia Kafesu (12,50%) benefited from Sachikonye’s shares.
The four also benefited from the shares belonging to other former FML executives who included Maxwell Bero (1,20%), Simba Dodzo (1,20%), James Jowah (12,50%) and Oliver Kamindimu (2,40%).
Hoto and other CA director shared a total of 43% belonging to the former FML executives.
Justice Gowora however ruled that the redistribution of the shares was improper. She said Hoto and other CA directors should return the shares. The judgment means that Hoto, Lorimer, Biti and Kafesu will have to give up Sachikonye’s 26%. They also have to give back the 17% stake they took from Dodzo, Bero, Jowah and Kamindimu.
This week Addington Chinake of Kantor & Immerman Legal Practitioners who is representing Sachikonye wrote to Hoto and other CA directors demanding an urgent meeting to rectify the shareholding structure in line with the High Court ruling.
“Our clients have since requested us to regularise their interest in Capital Alliance (Pvt) Ltd and therefore we are instructed to request a meeting, in terms of the Companies Act,” said the letter which was delivered to the CA directors this week.
Sachikonye’s group is also demanding that CA directors present audited accounts for the past four years. Sachikonye is also seeking reinstatement as a director of CA. Other issues on the agenda of the meeting will be the confirmation of the CA shareholding in line with the High Court ruling and reconciliation of shareholders since the relisting of FML.
Sachikonye’s group has also suggested the appointment of a new company secretary and public officer at CA for 2008.
His group is also seeking the appointment of three other directors on the CA board. The additions to the board will include Ruth Ncube (FML corporate executive), Simba Dodzo and a G Jonah. The meeting will be held on January 28.