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ZB shareholders to resolve dividend dispute

ZB Financial Holdings Limited (ZBFH) shareholders meet next month to resolve a dispute over the payment of a dividend to Transnational Holdings Limited (THL).

BY BUSINESS REPORTER

THL has 26% shareholding in the group and raised a storm after receiving a dividend for 2015 amounting to $658 699. The National Social Security contends that it was improper for THL to receive a dividend, as it was not yet a shareholder at the record date for the dividend payment of June 17, 2016.

Last year, THL was given 26% of ZBFH after government agreed to transfer part of its shareholding as compensation to the Nicholas Vingirai-led investment vehicle for the loss of Intermarket Holdings Limited, nearly a decade ago. The shares were transferred into THL’s name on February 6, 2017.

In a notice yesterday, ZBFH said the 28th annual general meeting of shareholders would be held on May 12 at the group’s head office. As a special business, the shareholders have to consider, and if deemed fit, to pass resolutions in respect of the “propriety of the payment by the company of a dividend claim in the sum of $658 699 to Transnational Holdings Limited on March 7”.

The meeting has to approve or disapprove the claim by “THL to be issued with a further 10 876 184 shares in the company”.

The shareholders will also receive a report on the corrective order issued to ZBFH by the Reserve Bank of Zimbabwe (RBZ). In a letter dated March 7, RBZ ordered the financial services group to revoke the appointment of Mike Manyika as chief operating officer and fined ZBFH $36 000 the total amount of every day the executive was employed.

ZBFH said while some of the matters listed in the corrective order were addressed, the refund of the dividend to the company by THL was unresolved as the Vingirai-led outfit was contesting the claim for a refund. It said the appointment of independent non-executive directors and the constitution of the board committees have also not been resolved, so was the position regarding executive appointments.

Source :

newsday

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