Long-serving MultiChoice Group director Jim Volkwyn will step down from the board of the JSE-listed broadcaster at its AGM this week.
The decision, disclosed to investors via the JSE on Tuesday, comes two days after it emerged that a major shareholder had vowed to block his re-election as a director. Volkwyn has now decided not to make himself available for re-election.
According to a report in the Sunday Times, the Public Investment Corp, which manages the pension savings of South Africa’s civil servants, had threatened to block Volkwyn’s re-election over payments to him, by MultiChoice, of controversial consultancy fees running into millions of rand.
The Sunday report quoted David Masondo, the PIC’s chairman, of voicing opposition to a claim that the board had extended the consultancy agreement to 2028. “If this is true, it would in my view be tantamount to breaches of corporate governance principles,” he reportedly said.
“This conduct would raise questions and remuneration dealings within MultiChoice, a company facing commercial headwinds. There have to be consequences where corporates are tone deaf and create structures that are used to undermine the principles of corporate governance. This is intolerable and undermines all the shareholders of MultiChoice,” Masondo, who also serves as South Africa’s deputy finance minister, was quoted as saying.
The broadcaster on Tuesday defended the payments, and thanked Volkwyn for his contribution to building the MultiChoice business over a period of decades.
‘Served with distinction’
It told investors via a statement on the JSE’s stock exchange news service that the consultancy arrangements “were at all times disclosed to shareholders” and were “lawful in all respects, as was confirmed by external legal advice”.
“In approving the consultancy arrangements, the board at all times ensured compliance with corporate governance requirements,” it added.
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“Mr Volkwyn has served MultiChoice Group with distinction for more than 33 years, including previously as CEO of the global video entertainment business under Naspers and then as an independent non-executive director of the board from MultiChoice Group’s listing in 2019.”
MultiChoice will hold its AGM on Wednesday at its head office in Randburg, Johannesburg. – © 2024 NewsCentral Media