Ex-CFI directors threaten legal action

Two former non-executive directors of CFI Holdings have said they reserve the right to sue for defamatory allegations, following their exit from the group on Tuesday.

BY BUSINESS REPORTER

Ephraim Chawoneka and Douglas Mamvura resigned on Tuesday, a day before an extraordinary general meeting of shareholders was supposed to determine their fate following a resolution pushed by Nicholas van Hoogstraten’s Willoughby for the duo’s ouster.

In a letter to CFI company secretary Panganayi Hare, Mamvura said the matters raised in the statement presented by his counsel at the company’s EGM on November 15 remained “germane to CFI Holdings Limited which is now beyond the control of the fractured board of directors”.

“I stand by my statement previously made and wish to add that I am no longer able to professionally and diligently perform my fiduciary duties as a director in such circumstances,” Mamvura wrote in the letter dated December 5.

He said an EGM had been requisitioned to remove him from the board on “spurious and unfounded grounds, which, for the record, are disputed in their entirety”.

In the presentation at the November 15 EGM, Mamvura said the notice calling for that meeting had not been authorised by the board and had not been approved by the Zimbabwe Stock Exchange.

He said a transaction challenged by Willoughby to reserve to the sale of Langford Estate to Fidelity Life had been approved at the material time.

Chawoneka said in a letter to Hare that he fully associated himself with Mamvura’s statement, saying matters he raised remained germane to CFI Holdings Limited “which is now beyond the control of the fractured board of directors”.

He said he was no longer able to professionally ad diligently perform “my fiduciary duties as a director in such circumstances”.

“Take note that I fully reserve my rights to pursue the defamatory allegations made against me,” Chawoneka wrote in the letter dated December 5.

Ex-CFI directors threaten legal action : NewsDay Zimbabwe.