(Alliance News) - Old Mutual Ltd on Tuesday welcomed the verdict of its case against former chief executive Peter Moyo, having won its appeal against his reinstatement.
Old Mutual was the second-best performer in South Africa's Top 40 index on Tuesday, with shares up 3.7% at ZAR19.77. Its London shares were up 4.3% at 105.65 pence.
An appeal hearing in the South Gauteng High Court upheld with costs Old Mutual's appeal against a July 2019 order requiring the investment, insurance and banking firm to temporarily reinstate Moyo as CEO.
Moyo had been chief since 2017 when he was dismissed in June 2019 due to a "material breakdown of trust and confidence" related to the handling of potential conflicts of interest. The issue surrounded investment firm NMT Capital, in which Moyo and Old Mutual both have an interest, and the payment of a dividend.
In July, the High Court of Gauteng ordered Moyo be temporarily reinstated by Old Mutual and barred the firm from appointing anyone to replace him. Old Mutual also was ordered to pay the legal costs incurred by Moyo.
Old Mutual said its successful appeal against the ruling "confirms that Old Mutual acted lawfully in terminating Peter Moyo's contract.
"Importantly, it also provides legal clarity on corporate governance and board stewardship, including the relationship between boards and executive leadership."
The firm added that: "Old Mutual is committed to good governance and the appropriate management of conflicts of interest."
By Anna Farley; annafarley@alliancenews.com
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Old Mutual Lim. (OMU)