The world of conflicts of interest and dodgy corporate governance in SA was once again in the spotlight this week. Peter Moyo, the erstwhile Old Mutual CEO, lost his case against the insurance company where he sought to be paid R250m for the harm he believed he had suffered due to its actions in 2019.
As Old Mutual CEO, Moyo also happened to be a shareholder in a company where Old Mutual held both preference shares and ordinary shares. From the chronology of events, it turns out that Moyo had participated in a meeting where NMT Capital declared ordinary dividends while arrear dividends were still due. The crux of this sequence of events is that by definition — even before one traverses the law — preference dividends are supposed to be settled before ordinary dividends are paid...
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