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Business In The News South Africa

Group Five’s extraordinary general meeting sparks an exodus of board memebers

JOHANNESBURG, June 23 – Construction and engineering giant Group Five said on Friday that five directors will resign next month, including chairwoman Philisiwe Mthethwa, ahead of the extraordinary general meting called by one of the major shareholders.

This comes after fund manager Allan Gray, whose clients hold 25 percent of the construction company, said last month that it had lost faith in Group Five’s board.

Allan Gray further called for an extraordinary general meeting to reconstitute the board, saying the company needed “a fresh start” following an exodus of numerous executives and directors.

The extraordinary general meeting will be held at Group Five’s offices in Johannesburg on Monday, 24 July. Group Five has seven members in its board.

Group Five said as a result of the proposed reconstitution of the board, Mthethwa, and independent non-executive directors Kalaa Mpinga, Justin Chinyanta, Willem Louw, and Vincent Rague, will all resign on that day.

Mthethwa is the chief executive of the National Empowerment Fund and wife of Arts and Culture Minister, Nathi Mthethwa. She is also the sister of Deputy Finance Minister, Sfiso Buthelezi.

Group Five said the record date for determining which shareholders are entitled to participate in and vote at the extraordinary general meeting EGM is Friday, 14 July.

– African News Agency (ANA)

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