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Johannesburg - Investment holding company Mvelaphanda Group has reduced its board of directors by half, following the restructuring of its investments.
On Wednesday Mvela Group announced the resignations of non-executive directors Mpumi Mpofu, David Moshapalo, Carl Stein and Ramesh Patel from its board.
"The board is being reduced from ten to five members, made up of four non-executive directors ... and an executive director," reads Mvela Group?s annual report.
Chief executive Yolanda Cuba was also due to resign from the board on December 31 in order to move to a separate management company that would have focused on unlocking the value in Mvela. Cuba, together with Mvela chair Mikki Xayiya and finance director Ernst Röth would have been part of the new company.
However, the company was never created following much shareholder criticism as Cuba and the current executive directors would have been generously rewarded for hiving off the company's assets.
They could have earned up to R95m among themselves, in addition to their current remuneration packages.
Xayiya and Röth are both staying on the Mvela Group board as non-executive chairperson and executive director respectively.
"As the company (Mvela Group) will not be taking on any new strategic investments, all employment contracts with the employees in the investment division have been terminated while the employees in the operations and administration divisions have been redeployed to Mvelaserve," reads the annual report.
Mvelaserve, which has appointed its own chief executive and now operates independently of the head office, is the group's second-largest division after hospital chain Life Healthcare.
Cuba told Fin24.com on Thursday that she has committed to stay as chief executive and manage down the company?s strategic investments.
?I have committed to staying until we realise at least 70% of the assets,? said Cuba. She says she?s working with skeleton staff and expects to complete the whole value unlocking exercise in about three years.
The 22% stake Mvela owns in Life Healthcare accounts for over 60% of the assets to be unlocked. ?We are focusing mainly on the unlisted ones,? said Cuba.
All Mvela Group's operations - including facilities management company TFMC, security group Protea Coin and King Pie - are now housed under Mvelaserve.
- Fin24.com