Mycroft’s claims dismissed as false, Meikles executives issue harsh denial – Nehanda Radio

The dispute between Malcolm Mycroft and Meikles Limited took a dramatic turn when several directors of the company came forward to refute the former Chief Executive Officer’s (CEO) allegations of unfair dismissal.

According to Matthew John Stewart Moxon, director and deputy chairman of the board of Meikles Limited, the meeting at which it was decided to dismiss Mycroft was properly constituted, with five directors present, including himself.

Mycroft was summarily dismissed on 1 October 2024 and has since applied to the High Court for a declaratory judgment that his dismissal was irregular and invalid.

According to court documents, Mycroft’s troubles began when ASB Hospitality and Meikles Limited signed a Memorandum of Understanding (MoU) on the instructions of the company’s chairman, John Moxon, regarding the sale of its shares in the Victoria Falls Hotel.

In his statement, Mycroft admitted that he did this without the board’s knowledge. Mycroft said he was acting with the authority of a shareholder. According to the board, this is an irregular situation.

Meikles Limited and African Sun jointly operate and manage Victoria Falls Hotel and each hold a 50% interest. Mycroft attempted to sell his shares in the company without consulting the hotel’s co-owners, Africa Sun.

“These allegations arise from the Memorandum of Understanding (MoU) that I signed between ASB Hospitality and the company upon the instructions of the Chairman and the Company’s major shareholder.

Mycroft said: “I was asked to resign, which I refused as I denied allegations that I had acted improperly and maintained that the signing of the MoU was carried out on the instructions of the Chairman (John Moxon).”

Mycroft was accused of misconduct for his decision to overrule the board and was subsequently fired.

In his counter-affidavit, Matthew Moxon denied that Mycroft was an employee of Meikles Limited and stated that he had never been paid by the company.

Matthew Moxon also argues that the board of directors of Meikles Limited has the power to remove an officer of the company, such as the Chief Executive Officer, with or without specific cause.

Several other directors of Meikles Limited, including Kazilek Ncube, Rugare Chidembo, Stewart Cranswick and James Mushore, also expressed support for Moxon’s version of events.

In their supporting affidavit, they confirm that the meeting at which it was decided to remove Mycroft was properly constituted and that the decision to remove him as CEO was unanimous.

“There was never a time during the meeting when there were less than five directors present in the meeting,” said Stewart Cranswick, director of Meikles Limited.

“When the decision was taken to remove Malcolm Mycroft from his position as Chief Executive Officer of Meikles Limited, five directors were personally present in the boardroom.

“They were Messrs Matthew John Stewart Moxon. James Mushore, Kazilek Ncube, Rugare Chidembo and me. “The decision was accepted unanimously.”

Rugare Chidembo, another director of Meikles Limited, added: “All the points made by Matthew John Stewart Moxon in relation to what transpired at the board meeting of 1 October 2024 are true and correct.

“All matters stated by Matthew John Stewart Moxon in connection with Malcolm Mycroft’s position as Chief Executive of Meikles Limited are true and correct.

“There has never been a time at a board meeting when there were fewer than five directors present.”

However, Mycroft denied any wrongdoing, claiming his dismissal was the result of a flawed process that breached principles of good corporate governance.

He claims that the meeting at which he was impeached was irregular, lacked a quorum, and that he was not given adequate notice or opportunity to respond to the allegations against him.

In a supporting statement, Meikles Limited’s chairman, John Moxon, stated that the removal of Mycroft from his position as Chief Executive Officer was not part of the matters on the agenda for the 1 October 2024 meeting.

Moxon also stated that he would not allow the procedure adopted at the meeting to take place.

The case is expected to be heard in the High Court soon, with Mycroft’s legal team arguing that the company’s actions were illegal and their client’s rights were violated.

The board of directors of Meikles Limited denied any wrongdoing, stating that the meeting at which it was decided to remove Mycroft was properly constituted and that the decision to remove him as CEO was taken unanimously.

Mycroft will remain Managing Director of TM Supermarkets until the supermarket’s partner Pick n Pay South Africa determines its fate.

The Zimbabwe Stock Exchange (ZSE) has since suspended trading in Meikles Limited shares, citing concerns about corporate governance within the company. The suspension, effective immediately, will remain in effect until further notice.

According to ZSE Chief Executive Justin Bgoni, the purpose of the suspension is to enable Meikles Limited to address corporate governance concerns. An extraordinary general meeting will be held in mid-December to address the issues.