BOARD changes are looming at Afre Corporation following revelations that three directors Patterson Timba, Dr Daud Dube and Professor Norman Nyazema will face the wrath of shareholders at an extraordinary general meeting (EGM) slated for October 26, 2012.
Report by Clive Mphambela
According to a notice of the impending EGM issued this week, shareholders will be asked to consider, and if deemed fit, pass with or without modification, resolutions to effectively dismiss the three directors.
A circular issued by the company yesterday indicates the three directors face the chop following a corrective order issued by the Insurance and Pensions Commission (IPEC) in June this year which, among other things, sought the enhancement of corporate governance through the restructuring of the boards of directors of Afre and its subsidiaries. The corrective order sought that certain members of the boards of Afre and its subsidiaries relinquish their posts, and these included the trio.
According to sources, the three directors have refused to step down of their own volition, leaving shareholders with no option but to force them off the board.
The trio has been effectively barred from conducting or associating with the business affairs of Afre in line with the corrective order.
Earlier this year former FD Dunmore Kundishora, a close Timba associate, was forced off the board at an annual general meeting.
“The remaining affected directors are the subject of the proposed EGM resolutions 3, 4 and 5,” reads part of the circular to shareholders, in direct reference to resolutions seeking the ouster of the three non –executives from the Afre board.
Former Afre executive chairperson Timba, who is linked to missing securities that an Afre subsidiary — First Mutual Life — allegedly lost through a botched scrip lending transaction in which more than US$4 million in policyholder assets were allegedly misappropriated, has been associated with the eventual financial turmoil that beset Afre Corporation during and immediately after his tenure as CEO.
Timba’s unfettered executive powers and overbearing influence as both a major shareholder and an executive in Afre has been singled out by analysts as the main reason for the near collapse of Afre under his charge.
Timba also stands accused of helping himself to depositors’ funds at ReNaissance Merchant Bank.
Hoto told businessdigest that the matter concerning the recovery of the missing securities was before the courts and therefore subjudice. He was however able to disclose that recovery prospects for the amounts lost were very high.