| Thu 28 Jun 2007, 16:14 | | BAW - Barloworld - Resignation of Deputy Chairman |
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BAW BAWP
BAW
BAW - Barloworld - Resignation of Deputy Chairman
Barloworld Limited
(Incorporated in the Republic of South Africa)
(Registration number 1918/000095/06)
(Share code: BAW)
(ISIN: ZAE000026639)
(Share code: BAWP)
(ISIN: ZAE000026647)
("Barloworld")
RESIGNATION OF DEPUTY CHAIRMAN
The Barloworld board has accepted the decision taken by Mr. Trevor Munday to
stand down with immediate effect as Deputy Chairman of Barloworld Limited and
understands the reasons for his decision. A copy of the media statement released
by Trevor is attached.
Mr. Dumisa Ntsebeza, Chairman of Barloworld Limited, made the following
statement on behalf of the board:
"We regret that an unfortunate controversy resulted from the appointment of Mr.
Munday as Deputy Chairman of Barloworld. Both Trevor and I have been under
considerable strain in the recent while, but I am happy that we all now have
emerged from it all with dignity and a determination to forge ahead and unlock
value for all our shareholders.
For my part as Chairman of the Board, I respect Trevor`s decision for the
reasons that he has given. All I wish to say is that in recognition of the
skills that Trevor brings to the Company, Trevor will continue to be
tremendously useful to me and the Board in several ways. He already chairs the
Barloworld Coatings Unbundling Committee as an independent non-executive
director. Furthermore, I will be recommending to the Board that he be appointed
to one or more Board subcommittees where his various attributes in terms of
skill, experience and acumen will add considerable value. The Board and I would
now wish to be left alone so that the executive management team can focus their
efforts on trading with our leading brands in the market place in the cause of
advancing value for all our stakeholders."
On behalf of the Board
S Mngomezulu
Secretary
28 June 2007
SANDTON
Sponsor: JPMorgan
FULL TEXT OF THE PRESS STATEMENT BY TREVOR MUNDAY
"On 6 June 2007, Barloworld announced the appointment of Mr Dumisa Ntsebeza as
Chairman and me as Deputy Chairman of Barloworld Limited, following a Board
meeting at which the recommendations of a Chairman`s Succession Committee
established by the Board were unanimously approved.
The Public Investment Corporation (PIC), a significant (17%) shareholder of
Barloworld, thereafter objected publicly to the appointment of a Deputy Chairman
and described it as `racist and patronising` to Mr Ntsebeza. Subsequently, there
was substantial public comment on, and media coverage of, this matter.
In my view the selection process was conducted with good intentions, taking due
cognizance of the future needs of Barloworld and its stakeholders as the Group
embarks on, or accelerates, a number of actions involving significant strategic
change.
I understand the transformational role that the PIC has publicly chosen as an
agent for change in corporate South Africa. I strongly support and encourage
this role although respectfully appeal for the manner in which it is discharged
to be more sensitive, and for due cognizance to also be given to relevant
experience and skills required of corporate leaders serving the multiplicity of
industries making up our economy. It is also important that recognition and
respect is shown by such an influential state-associated enterprise for the role
of corporate boards as well as the views and inputs of other shareholders, both
locally and overseas, who have equivalent shareholder rights.
From a personal perspective, I have found the publicity and coverage relating to
this matter to be dispiriting in a situation that has not been of my own making.
I would not have accepted my appointment if I had considered it in any way to be
`racist or patronizing`, or if I did not believe that all members of the Board
were supportive of the leadership model proposed and the role envisaged for the
Deputy Chairman. The Board, which has high-calibre South African and
international members with integrity and expertise, clearly believed that the
combination of Mr Ntsebeza`s and my experience and skills would be complementary
and value-adding for the Group.
The Board has met to reflect on the prevailing dilemma and a longer-term process
to engage with and address stakeholder expectations of the Group will be
initiated. In the short term, however, it has become clear to me that the
dilemma is tormenting for all involved and difficult to solve. Accordingly, I
consider it incumbent on me to assist in finding a solution.
I have never been driven or motivated by positional authority. Rather,
throughout my career, opportunities to contribute and add value have been my
priority. Accordingly, I announce that with immediate effect I will stand down
as Deputy Chairman of Barloworld Limited. I do so respecting the decision taken
by the Board to appoint me and appreciative of the confidence they have shown in
me. With the support of shareholders, I will remain on the Board as an
independent non executive director.
I wish to emphasize that my decision has neither been requested by the
Barloworld Board, nor any member thereof. Indeed, I thank them all, as well as
many others from varied constituencies across our country, for their much-
appreciated support over the last few weeks. Whilst respectful of it, I have not
taken this decision as a result of the PIC`s stance as I am fully cognizant of
my fiduciary and moral obligations to all stakeholders and, in these unfortunate
circumstances, particularly to all the shareholders (and notably minority
shareholders) of Barloworld Limited. I assure them that I intend to continue
serving their collective interests as a member of the Board to the best of my
ability.
I wish Mr Ntsebeza much success in his role as Chairman of Barloworld Limited
and trust that stakeholders will put this event behind us and support CEO Clive
Thomson and his executive team going forward."
Date: 28/06/2007 16:14:49 Produced by the JSE SENS Department.
