GOVERNANCE
Group Five acted in bad faith, says Allan Gray
Allan Gray says Group Five acted in bad faith on Friday in advising shareholders that an extraordinary general meeting (EGM) had been scheduled for July 24, and not earlier, as called for by the fund manager. In May, Allan Gray, whose clients hold 25% of the construction and engineering company, stated it had "lost faith" in Group Five’s board. It called for an EGM to reconstitute the board, saying the company needed "a fresh start" after numerous executives and directors had left. Since then, it said that Group Five chairwoman Philisiwe Mthethwa had given it an undertaking that if the two parties did not come to an agreement last week, a notice of meeting for the EGM would be released on Friday June 9. "Unfortunately, the company just released a [stock exchange] announcement. They now say the notice will be released on June 23," Andrew Lapping, a director of Allan Gray, said on Monday. "We sent them the meeting request on May 11 with the resolutions [for an EGM]. All they had to do...
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