The dispute between Malcolm Mycroft and Meikles Limited has taken a dramatic turn, with several directors of the company coming out to refute the former Chief Executive Officer (CEO)’s claims of unfair dismissal.
According to Matthew John Stewart Moxon, a director and Deputy Chairman of the board of directors of Meikles Limited, the meeting at which Mycroft’s dismissal was decided was properly constituted, with five directors present, including himself.
Mycroft was abruptly fired on October 1, 2024, and has since filed an application with the High Court seeking a declaratory order that his dismissal was irregular and invalid.
According to court documents, Mycroft’s troubles began when he signed a Memorandum of Understanding (MoU) between ASB Hospitality and Meikles Limited on the instruction of the company’s board chairperson, John Moxon, for the sale of the company’s stake in Victoria Falls Hotel.
In his affidavit, Mycroft admitted that he did this without the knowledge of the board. Mycroft said he acted with a shareholder’s authority. Which is irregular, according to the board.
Meikles Limited and African Sun jointly operate and manage Victoria Falls Hotel, with each holding 50% shares. Mycroft sought to sell the company’s stake without consulting the co-owners of the hotel, Africa Sun.
“These allegations derived from a Memorandum of Understanding (MoU) I had signed between ASB Hospitality and the company on an instruction from the Chairperson of the Board and major shareholder of the Company.
“I was asked to resign which I refused as I denied the allegations made that I had acted irregularly and maintained that the signing of the MoU was carried out on instruction of the Board Chair (John Moxon),” Mycroft stated.
Because of his decision to override the board, Mycroft was charged with misconduct and subsequently fired.
Matthew Moxon, in the opposing affidavit, has denied that Mycroft was an employee of Meikles Limited, stating that he was never paid any form of remuneration by the company.
Matthew Moxon further argues that the board 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, have also come out in support of Moxon’s version of events.
In their supporting affidavits, they confirm that the meeting at which Mycroft’s dismissal was decided was properly constituted and that the resolution to remove him as CEO was passed unanimously.
“At all times during the meeting, there was no time when there were less than five directors in the meeting,” said Stewart Cranswick, a director of Meikles Limited.
“At the time that the resolution to remove Malcolm Mycroft from his position as Chief Executive Officer of Meikles Limited, there were five directors personally present in the boardroom.
“These were Messrs Matthew John Stewart Moxon. James Mushore, Kazilek Ncube, Rugare Chidembo and myself. The resolution was passed unanimously.”
Rugare Chidembo, another director of Meikles Limited, added: “All matters stated 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 Officer of Meikles Limited are true and correct.
“There was never a time during the board meeting when there were fewer than five directors in the meeting.”
Mycroft, has, however, denied any wrongdoing, claiming that his dismissal was a result of a flawed process that violated the principles of good corporate governance.
He alleges that the meeting at which his dismissal was decided was unprocedural, lacked a quorum, and did not provide him with adequate notice or an opportunity to respond to the allegations against him.
In a supporting affidavit, John Moxon, the board chairman of Meikles Limited, has stated that the removal of Mycroft from the position of Chief Executive Officer was not part of the issues in the agenda for the meeting of October 1, 2024.
Moxon also noted that he would not have allowed the procedure adopted at the meeting to take place.
The matter is expected to be heard in the High Court soon, with Mycroft’s legal team arguing that the company’s actions were unlawful and that their client’s rights were violated.
Meikles Limited board has denied any wrongdoing, stating that the meeting at which Mycroft’s dismissal was decided was properly constituted and that the decision to remove him as CEO was unanimous.
Mycroft remains TM Supermarkets’ General Manager until Pick n Pay South Africa, the supermarket’s partner, determines his fate.
The Zimbabwe Stock Exchange (ZSE) has since suspended the trading of Meikles Limited shares, citing concerns over corporate governance within the company. The suspension, which took effect immediately, will remain in place until further notice.
According to ZSE Chief Executive Officer Justin Bgoni, the suspension is intended to allow Meikles Limited to address the corporate governance concerns. An extraordinary general meeting will be held in mid December to address the issues.
John Moxon is a law unto himself. He has been at the helm of the inherited Meikles family business for a long time, soley making decisions. Over those years, the business grows and lists and consequently has other shareholders. John does not evolve nor does he learn the difference between a sole trader and a corporated or listed entity. Remember the still-born that was Kingdom Meikles Africa Limited, John sold Cape Grace hotel without board approval, Nigel Chanakira threw his toys, and John simply said it was his hotel to sell, this for a listed company. And here we are again, a 🐆leopard cannot change its spots.
John Moxon is a law unto himself. He has been at the helm of the inherited Meikles family business for a long time, soley making decisions. Over those years, the business grows and lists and consequently has other shareholders. John does not evolve nor does he learn the difference between a sole trader and a corporated or listed entity. Remember the still-born that was Kingdom Meikles Africa Limited, John sold Cape Grace hotel without board approval, Nigel Chanakira threw his toys, and John simply said it was his hotel to sell, this for a listed company. And here we are again, a 🐆leopard cannot change its spots.