A boardroom battle has erupted at Numsa Investment Company (NIC), leaving the entity with two men claiming to be its chief executive.
Last week, Sunday World reported that Khandani Msibi had been placed on precautionary suspension as CEO of the investment arm of the metalworkers union.
In a letter to Msibi, the company said action was being taken against him over allegations of gross misconduct and failure to perform his duties with the required diligence.
This week, Osborn Mahanjana, the CEO of 3Sixty Global Solutions Group, was appointed acting CEO of NIC and Dove Group Holdings.
Through NIC Invest, NIC holds a 40% stake in DGH which owns Doves Funerals, and another 40% stake in 3Sixty GSG, the administrator of Sizwe Hosmed Medical Aid.
Msibi has insisted that he remains the legitimate CEO of the NIC.
He said neither an individual nor a group of directors had the authority to remove a group CEO without a properly convened board meeting.
His defiance has left the investment company with two men laying claim to the corner office.
Msibi was also suspended as executive chairperson of 3SixtyGSG but he insists that the board meeting where the decision was taken was convened in breach of the constitution of the companies and applicable governance instruments.
In a letter to Doves Group Holdings and Mahanjana, Msibi described attempts to force him out of office as unacceptable.
“You are advised that urgent board meetings of Komz Investment and Altrex Investments (DGH shareholder entities) were duly convened. At those meetings, your nomination to the DGH board and the nomination of Mr (Pat) Nxumalo (Altrex shareholder) were formally rescinded. Separately, your nomination to the board of 3Sixty GSG has been rescinded. These decisions are lawful, properly minuted, and binding.
“Accordingly, you are no longer a nominee director of DGH and 3Sixty GSG. The Board of DGH and GSG will have a further resolution sponsored for your removal as director in the underlying subsidiaries,” wrote Msibi in the letter dated June 25.
He said Mahanjana’s acceptance of the acting CEO role at the NIC presented a conflict of interest as he was CEO of subsidiary 3SixtyGSG and had a duty to act in the best interests of the group and its shareholders. By accepting the acting executive position at NIC, which indirectly had a stake in 3Sixty through NIC Invest and also a share in DGH, Mahanjana had placed himself in a position where his responsibilities to the group conflicted with his obligations to one of its shareholders.
Msibi also wrote to staff at Doves, informing them that Mahanjana’s appointment was “irregular, unlawful and done without any legal force or effect”. He said he was the majority shareholder of the company, with 60% voting rights.
“I, Khandani Jack Msibi, remain the lawfully appointed Executive Chairman of Doves Group Holdings (Pty) Limited. No suspension, removal or curtailment of my authority has been effected through any process that is valid under company law.
“The purported ‘suspension’ referenced in the circulated document is itself contested, improperly constituted, and subject to formal legal challenge. I continue to exercise full executive authority over this company and its subsidiaries.”
He instructed that Numsa deputy president Mac Chavalala be blocked from entering the DGH premises, that Mahanjana and Chavalala’s instructions be ignored and that they not be allowed to go through company information.
Msibi said staff should not attend meetings called by Mahanjana, Chavalala or anyone acting as their representatives.
This was in response to an earlier letter from Mahanjana to staff, informing them of Msibi’s suspension in relation to his position as an employee.
Asked for comment, NIC directed Sunday World to a statement dated 23 June announcing the placement of Msibi on precautionary suspension and Mahajana’s acting appointment.
“The decision … was duly considered and approved by the board,” read the statement.
- A boardroom battle has erupted at Numsa Investment Company (NIC), leaving the entity with two men claiming to be its chief executive.
- Last week, Sunday World reported that Khandani Msibi had been placed on precautionary suspension as CEO of the investment arm of the metalworkers union.
- In a letter to Msibi, the company said action was being taken against him over allegations of gross misconduct and failure to perform his duties with the required diligence.
- This week, Osborn Mahanjana, the CEO of 3Sixty Global Solutions Group, was appointed acting CEO of NIC and Dove Group Holdings.
- Through NIC Invest, NIC holds a 40% stake in DGH which owns Doves Funerals, and another 40% stake in 3Sixty GSG, the administrator of Sizwe Hosmed Medical Aid.
