EOH founder resigns as company shakes up board | Fin24
 
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EOH founder resigns as company shakes up board

Feb 20 2019 08:42
Fin24

EOH founder Asher Bohbot has resigned from the board effective February 28, the company has announced.

In a SENS statement, the company, a technology services provider, said Bohbot, who was a non-executive chairman and CEO for 19 years, will continue to serve on an advisory basis and assist the Group until July 31.

This comes as EOH shares fell more than 14% on Monday in the wake of Microsoft's decision to terminate contracts with one of its subsidiaries last week.

The share, which opened at R20.05 on Monday, plummeted as low as R15.20 during the day's session. By 16:15 it was trading 14% lower at R16.77.

At the time, the group had issued an update on a decision by Microsoft to terminate a channel partner agreement with its subsidiary EOH Mthombo.

In Wednesday's SENS statement Bohbot was quoted as saying, "I have confidence in EOH's management and believe that the new strategy, which is in advanced stages of implementation, will be beneficial to all our stakeholders."

The company also announced several other resignations which it said was in line with King IV's corporate governance guidelines on board member independence.

In accordance with King IV, a former CEO should not serve as chairman of the board until a three-year cooling off period has been observed, the company said.

Other members who have resigned, also in keeping with King IV's stipulation, include:

 * Rob Sporen, founding member of EOH and non-executive director who resigns after 20 years.

* Tshilidizi Marwala, non-executive director after 11 years.

* HR executive director Tebogo Maenetja, who leaves to pursue another position at an international company, EOH said.

The company said a process to appoint new board members is presently underway.

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