WITHIN four months of a bruising row with former director Nic Frangos over its corporate governance procedures, Corpcapital has revamped the entire structure of its board.

Although Corpcapital's intention was to unlock shareholder value by realising assets and focusing on its core profitable businesses, its executive landscape has been transformed in a way more in line with corporate governance best practice.

When the row first erupted, the company boasted six executive directors and three nonexecutives. Although exonerated on the allegations by Nigel Payne, one of his recommendations was that more nonexecutive directors be appointed.

Corpcapital's changes, which were revealed yesterday, showed that the board situation had been reversed, as there are now four executive directors complemented by five nonexecutives.

Yesterday, executive Martin Sacks resigned to pursue "investment and business opportunities outside the group" but will now be a nonexecutive director.

Another executive, Barry Kalkhoven, also handed in his resignation and will leave to launch a Cape-based financial advisory company called Keystone.

The revamped board's four executives are Jeff Liebesman, Neil Lazarus, Errol Grolman and Benjie Liebmann. This was only one notable aspect of the transformation aimed at unlocking value for shareholders.

The group also announced its corporate finance team would be separated from the group as it had been bought by management.

This division will be rebranded as Java Capital and will be headed by Andrew Brooking and Kevin Joselowitz. Lazarus said there would still be a strong working relationship between the two. He explained this was partly in line with the new strategy, but also because of the battering Corpcapital's reputation took as a result of Frangos' accusations.

"The Frangos dispute has seriously affected the ability of our corporate finance business to offer services under the Corpcapital brand," he said.

Lazarus said the divestments of its corporate finance business would not have a material effect on its profit, cash flow and net asset value. He said profit had largely stemmed from investment banking and property businesses. The group is set to release its interim results later this week.

Apr 08 2003 07:40:17:000AM Rob Rose Business Day 1st Edition