Buy-backs
COMPANY COMMENT: Conflict of interest glossed over
PIC covers itself with broad conditions for supporting share repurchases while Eskom CEO appears to enjoy a fight
In the enthusiasm with which it has been embraced, there has been absolutely no thought given to the potential fundamental conflicts of interest this authority can give rise to or the potential for Invicta-type abuse. In its corporate governance policy statement, the Public Investment Corporation (PIC) covers itself with broad conditions for supporting share repurchases. It is principally in favour, says the PIC, provided the share repurchases are done judiciously and with the interest of all shareholders in mind. In its Proxy Insights, Legae Securities says it generally supports share buy-backs as a relatively tax-efficient mechanism for returning capital to shareholders. Eskom CEO Brian Molefe appears to enjoy a fight, and EE Publishers’ MD Chris Yelland is happy to oblige him. The publisher has disputed a few matters, one of which is the utility’s statistics of its electricity availability factor (EAF). The EAF shows how efficiently Eskom is maintaining its power stations. A dete...
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