Old Mutual ordered to reinstate CEO Peter Moyo

The Gauteng High Court in Johannesburg has declared dismissal of former Old Mutual CEO Peter Moyo unlawful and ruled that he should be reinstated temporarily.

ROUND 1 – The Courts have ordered Old Mutual to (temporarily) reinstate Peter Moyo as CEO, while his dismissal has been declared unlawful. Old Mutual are interdicted from replacing Moyo must also pay for his legal fees. #SABCNews

— Arabile Gumede (@ArabileG) July 30, 2019

Additionally, Old Mutual has been barred from replacing Moyo in the interim.

ROUND 2 – Peter Moyo wants Old Mutual's board to be declared "delinquent" which would prevent them from holding any directorship positions for a number of years. Moyo will also lodge a claim for reputational damages by Old Mutual. #SABCNews

— Arabile Gumede (@ArabileG) July 30, 2019

Moyo was fired in June due to a “material breakdown in trust and confidence” as listed in an official statement released by the company announcing the termination of his contract.

This breakdown in trust was later attributed to alleged misconduct owing to the conflict of interests in his NMT Group.

RELATED: Old Mutual says conflict of interest saw Peter Moyo axed as CEO

While conflicting interest was declared upon his employment and was governed by a specific protocol to regulate the conflict of interest, Old Mutual said its board had not been provided with an “acceptable explanation” for the declaration of ordinary dividends by NMT Capital during 2018 in the amount of R115 million, which benefited Moyo R30.6 million.

This was in breach of Old Mutual’s rights as a preference shareholder.

EWN reports that shares in the company fell more than 3% after the court ruling.

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