In a surprising turn of events, a South African high court has upheld Old Mutual’s appeal against an order to temporarily reinstate former chief executive Peter Moyo.
The South Gauteng High Court has paved the way for the financial services firm to find a permanent replacement for Moyo.
“It confirms that Old Mutual acted lawfully in terminating Peter Moyo’s contract,” the firm said in a statement.
“Importantly, it also provides legal clarity on corporate governance and board stewardship, including the relationship between boards and executive leadership.
“Old Mutual is committed to good governance and the appropriate management of conflicts of interest.”
Moyo, who took on the top job in June 2017, told reporters outside the court that there is a “very good chance” he will seek to overturn the decision through the Supreme Court of Appeal in Bloemfontein, according to Bloomberg.
Historical events
The case drags back to May 2019, when Moyo was suspended due to an alleged material breakdown in trust and confidence between him and Old Mutual’s board.
Moyo was sacked nearly a month later.
The first ruling by judge Brian Mashile deemed the move unlawful and Moyo was reinstated on a temporary basis, which Old Mutual appealed.
This led the insurer to sack him a second time, which saw Moyo sue the company for contempt of court.
Old Mutual chairman Trevor Manuel was forced to apologise for comments he made about the judge during a press conference in August, which ultimately resulted in Mashile stepping down from the case in December.
Old Mutual South Africa is not connected with Quilter or Isle of Man-headquartered Old Mutual International, following the managed separation of the group in 2018.
