Zimbabwe Stock Exchange suspends Meikles over ‘governance concerns’
The Zimbabwe Stock Exchange (ZSE) has halted the trading of Meikles Limited shares, citing the need to address corporate governance concerns within the company.
· Nehanda RadioThe suspension, which took effect immediately, will remain in place until further notice.
According to a public notice issued by the ZSE, the halt in trading is intended to allow the exchange to make a relevant application to the Securities and Exchange Commission of Zimbabwe (SECZim) to approve the suspension of trading of Meikles Limited on the ZSE.
“The halt is to allow the ZSE to make a relevant application to the Securities and Exchange Commission of Zimbabwe to approve the suspension of trading of Meikles Limited on the ZSE.
“The application for the suspension by the ZSE is to allow Meikles Limited to address corporate governance concerns,” Justin Bgoni, ZSE Chief Executive Officer, stated in a notice to the investing public.
The move comes amid a backdrop of controversy surrounding Meikles Limited, which has been embroiled in a bitter dispute over corporate governance and management.
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The company’s former Chief Executive Officer (CEO), Malcolm Mycroft, was recently removed as CEO amid allegations of unfair salary benefits and unauthorized dealings.
Investigations by Nehanda Radio revealed that Mycroft secretly signed a Memorandum of Understanding with United Arab Emirates (UAE)-based Albwardy Investment for the sale of the company’s stake in Victoria Falls Hotel, allegedly without the involvement of the board.
Meikles Limited and African Sun jointly operate and manage Victoria Falls Hotel, with each holding 50% shares.
The unauthorised move has exposed alarming governance lapses within the company, sparking concerns among stakeholders. Mycroft’s actions have been described as “egregious corporate greed and blatant disregard for governance” by a source close to the development.
The controversy has also implicated Meikles Limited Chairman John Moxon, who has been accused of attempting to reinstate Mycroft despite the allegations against him.
Moxon has disputed the allegations against Mycroft and has announced intentions to take legal action against responsible directors and public officers.
During the suspension period, investors will not be able to buy or sell Meikles Limited shares. The ZSE has encouraged stakeholders to contact them for any further information or clarification.