Separating the wheat from the chaff.

Posted On Monday, 27 January 2003 02:00 Published by
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In the coming week Corpcapital's board meets representatives of Old Mutual Asset Managers to discuss the structure of an independent review of Corpcapital's corporate governance.
In the coming week Corpcapital's board meets representatives of Old Mutual Asset Managers to discuss the structure of an independent review of Corpcapital's corporate governance, according to Neil Lazarus, an executive director at Corpcapital.

The review will be conducted on behalf of shareholders on the recommendation of Old Mutual, which is the single largest institutional shareholder with 16 percent of Corpcapital.

It comes after Nic Frangos, a well-known South African businessman
and a former non-executive director of Corpcapital, shook the corporate world to the core over the past week after publishing an internal letter to the chairman, Eric Ellerine, on an internet site.

The 'letter of resignation', published weeks after he left the company, contains details of a boardroom squabble and culminates in allegations of serious corporate governance failure at the niche financial services group.

There is even a question mark about whether he resigned, as he initially claimed, or whether, as the Corpcapital management put it, he was asked to resign by the other board members.

There is more at issue than just corporate governance standards.

Standing on the side of executive directors are the other non-executive directors: Ellerine, Tom Wixley, who is the former head of Ernst & Young and the author of a book on corporate governance, and Wim Trengove, one of the country's leading advocates.

If Frangos's allegations hold up under scrutiny, their reputations could be seriously bloodied.

Publisher: Business Report
Source: Business Report

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