Moxon triumphs in Meikles boardroom war

PHILLIMON MHLANGA

John Moxon, embattled chairman of Meikles Limited, has decisively secured his position in a high-stakes boardroom battle, reshaping the leadership of one of Zimbabwe’s most iconic conglomerates, Business Times can report.

 The power struggle, marked by dissent and allegations of governance violations, resulted in the resignation of four independent non-executive directors- Rugare Chidembo, James Mushore, Stewart Cranswick, and Simon Hammond.

The directors resigned just before a recent Extraordinary General Meeting (EGM) convened to vote on their removal.

In a joint statement, they outlined their concerns over corporate governance and alleged external influences on Moxon’s leadership.

“As independent non-executive directors of Meikles Limited whose removal is being sought by the resolutions intended to be passed at this EGM  , we hereby exercise our right in terms of Section 177 (2) of the Companies and Other Business Entities Act (Chapter 24:31) to address the shareholders before any vote is taken on whether or not we should be removed,” reads part of a joint statement by Chidembo, Mushore, Cranswick and Hammond.

“We previously issued a statement on November 11 2024, noting our concerns on how the company was being run. We also wrote a letter to the Zimbabwe Stock Exchange suggesting that Meikles Limited’s securities be suspended pending resolution of corporate governance issues.

“We are aware and have been advised of the provisions of Section 202 of the Companies and Other Business Entities Act. We also know that we can be removed as directors of Meikles Limited and certainly would not ordinarily hold on to such positions as directors. However, we have remained to ensure that we fulfil our duties to the company as provided for by the law,” the statement read.

“This is so because we feel that we have an obligation to ensure proper corporate governance over major decisions such as asset disposals and also to ensure that no outside control and influence is exerted on the chairman, which could result in decisions which are not in the interests of the company and are prejudicial to shareholders as a whole.

“In view of our responsibilities as independent directors to protect the interests of minority shareholders, we have sought relief from the courts and the Zimbabwe Stock Exchange, but none has been received to date. In view of the above, we hereby resign as independent non-executive directors with immediate effect.”

The turmoil began in October 2024 with the contentious dismissal of CEO Malcolm Mycroft during Moxon’s hospitalisation. Mycroft was accused of clandestine negotiations to sell Meikles’ stake in the Victoria Falls Hotel, a move seen as potentially detrimental to shareholder value.

Moxon alleged that the board meeting to dismiss Mycroft was improperly convened, accusing certain directors of undermining governance protocols.

As the largest shareholder, owning 48% of Meikles through Meikles Consolidated Holdings, Moxon called for an EGM to remove the dissenting directors, citing governance breaches and opaque decision-making.

The crisis significantly impacted Meikles’ market capitalisation, which fell from US$42.8m in October 2024 to US$35.41m by November  26, 2024, the last day the company’s shares were suspended by the ZSE .

Investment analyst Tapiwa Nyoni remarked: “The suspension of Meikles shares highlights how internal governance failures can erode investor confidence. It’s a wake-up call for Zimbabwean corporations to prioritize accountability.”

The rumored sale of Meikles’ stake in the Victoria Falls Hotel intensified scrutiny. However, a joint statement from Meikles, African Sun Limited, and Emerged Railways Properties categorically denied the claims, reaffirming their commitment to preserving the hotel’s legacy.

“We reiterate our commitment to preserving the legacy of the Victoria Falls Hotel as a world-class destination. Stakeholders are advised to disregard speculative reports and rely only on official communications,” the statement read.

With the dissenting directors gone, Moxon has proposed new board appointments, including Fayaz King, Benjamin Ward, and Marcel Golding, aiming to inject fresh perspectives and strengthen governance.

Moxon also plans to optimize the company’s asset portfolio, potentially divesting non-core assets to enhance shareholder value.

The Meikles saga has reignited debates on corporate governance in Zimbabwe, highlighting systemic issues beyond a single company. Analysts argue that stronger oversight and regulatory frameworks are needed to restore investor confidence.

While Moxon’s leadership has stabilized Meikles for now, the path forward remains fraught with challenges.

The company’s future hinges on rebuilding its reputation, addressing governance concerns, and delivering on promises of reform.

The coming months will reveal whether Moxon’s leadership can restore investor confidence and ensure sustainable growth—or if deeper governance issues will resurface.

For now, Meikles stands at a crossroads, with its future hinging on the ability of its revamped leadership to navigate the complexities of a volatile economic environment and deliver tangible results.

Investors, stakeholders, and the market at large will be watching closely.