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Golden Sibanda Harare Bureau
Hwange Colliery Company’s forthcoming annual general meeting is likely to be explosive with a major shareholder threatening to block a couple of what he termed “Mickey mouse” proposals. Nick van Hoogstraten said in an interview yesterday that he would not allow the two resolutions he once shot down to sail through at the AGM scheduled to take place at the end of this month.

The business mogul’s remarks come as the government reversed its earlier decision to move a motion to retire all directors on the coal miners’ board later this month, a position the state changed in about 72 hours. It now appears only two board directors face the chop.
Board chairman Farai Mutamangira, who appeared set to be the biggest casualty of the mooted restructuring, is now guaranteed to continue in his capacity amid indications he was among the directors spared.

However, the issue likely to dominate the AGM relates to a special business resolution to recommend the board of directors to approve compensation to workers for monies paid for the 2007 share option scheme.

“The directors have applied for approval of a share option scheme using the company’s resources, which I stopped at the company’s last annual general meeting.

“This involves some directors who are proposing to pay $1,5 million for shares that were never paid for. Where does the money come from when the company is failing to pay employees and suppliers?” he queried.

Van Hoogstraten, with about 30 percent shareholding in the firm, said he would use his rights to thwart efforts to sneak in the “Mickey mouse” proposals.

The government holds the biggest stake in Hwange at 37 percent. Other significant shareholders include Mittal Steel African Investments with 9,76 percent and the National Social Security Authority with 5,87 percent.

The British business mogul also indicated that he would not allow the appointments to the board of a couple of proposed directors he objected at the firm’s AGM in 2012.

The businessman, who is no newcomer to board controversies, has never made secret his reservations about the calibre of some directors at the colliery, which he partly blames for the poor financial performance of the giant colliery company in recent times.

This comes as the government has rescinded its earlier decision to move a motion at the AGM to seek the retirement of the entire board of directors of Hwange Colliery.

In a letter to company secretary Thembelani Ncube yesterday, Mines and Mining Development Ministry secretary Professor Franscis Gudyanga said only Jiyane and Nkomo would be retired from the board.

“This letter serves to advise that further to my letter of June 2, 2014, the government of Zimbabwe will retire the following members from the board of HCCL at the next annual general meeting: N Jiyane, I Nkomo.

“The following directors are not affected and will remain on the board: Farai Mutamangira, Valentine Vera, J Chininga, (and) J Muswe,” he said.

“Further nominations to the board of directors will be communicated shortly. I trust that the above clarifies the position,” read the letter copied to Mines and Mining Development Minister Walter Chidhakwa and Secretary to President and Cabinet Dr Misheck Sibanda.

According to the notice of the AGM published yesterday, a L Nkomo who looks highly likely to be the fall guy at the AGM, Vera and Simon Chibhanguza retire by rotation, but are eligible for re-election.

Chairman Mutamangira now has the opportunity to see through his ambitious turnaround plan for the company if he decides to seek re-election at the AGM after he had earlier indicated his intention to step down.

While it was not clear what motivated the government’s new position, new Mines Minister (Chidhakwa) has never been one to shy wielding the axe on boards that fall under his ministry he feels were incompetent.

To date, he has dissolved the boards of the Minerals Marketing Corporation of Zimbabwe, the Zimbabwe Mining Development Corporation and Marange Resources.