Nedbank ‘relied on Steinhoff stars’
New Companies Act demands more of skilled, experienced directors by requiring they perform role in line with skills and experience
Nedbank Private Wealth is the latest fund manager to tell clients hit by the collapse in the Steinhoff share price that the calibre of the board directors encouraged it to invest in the retail group. "We drew comfort from the fact that many highly regarded individuals with strong track records served on the group’s supervisory board," the fund manager said in a note to clients last week. Shortly after Steinhoff’s dramatic announcement in early December of an investigation into its accounting practices, Korner Perspective issued a research note telling clients that one of many factors giving it comfort in the months leading up to the share price crash was, "a highly competent and experienced supervisory board of directors with six highly experienced chartered accountants on the supervisory board". On December 20, Standard Bank Group Securities told its clients: "The company’s auditors and supervisory board have clearly failed dismally to discharge their statutory duties." To date, no...
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