This archive report was first published on 22 June 2020.
On June 22, 2020, a South African court case involving Peter Moyo and Old Mutual came to an end, with the High Court upholding an appeal by Old Mutual against Moyo's reinstatement as CEO.
As reported by Carol Musyoka in Ideas & Debate on June 22, 2020, the case began in May 2019 when the Old Mutual board suspended Moyo, citing concerns over a conflict of interest. Moyo took the company to court, suing for wrongful termination and seeking reinstatement, damages to his reputation, and a declaration that the Old Mutual board of directors was delinquent.
However, the court ultimately ruled against Moyo, with the Supreme Court of Appeal dismissing his application for leave to appeal the January judgment that overturned his temporary reinstatement.
According to Rehana Cassim, a senior lecturer in company law at the University of South Africa, to be declared delinquent, a director must be guilty of serious misconduct, including gross abuse of position, gross negligence, willful misconduct, or breach of trust. A delinquency order can ban a person from being a director for at least seven years or even a lifetime in serious cases.
For Moyo, the reinstatement battle has been lost, but the war against Old Mutual and its board of directors is still to be won. It will be a bruising and costly fight, especially for the side that doesn't have deep corporate pockets.
