This way down for serious governance oversights

It seems that the board of Steinhoff International Holdings NV (“Steinhoff”) “chose not to inform investors of the dispute and potential claims arising from Tekkie Town vendors ahead of the private placement of Steinhoff Africa Retail (Star) shares conducted in early April.” The purchase price for Tekkie Town was either settled in full or in part through […]

The courage to speak up at a board meeting

What do most smart, accomplished corporate directors do when something doesn’t make sense to them at a board meeting? Nothing. There are exceptions, of course, but most directors tend to assume that if they don’t understand the logic of a chief executive’s argument or strategy, they’re probably the only one. Rather than be singled out, […]

Engaging on director nominations

Director nominations and elections represent some of the most fundamental ownership rights for shareholders – namely the right to appoint and remove members of a company board to represent their interests in promoting long-term value creation. Shareholders can – and should – become involved not only in voting for director candidates at AGMs, but also […]

STAR saddled with hugely expensive acquisitions by Steinhoff

Steinhoff Africa Retail Ltd (“STAR”) acquired the Tekkie Town investment and the investment in an unnamed call centre and debt collector from Steinhoff Investment Holdings Ltd (“Steinhoff”) as part of the take-over of the Steinhoff Africa Retail assets with effect 1 July 2017. Steinhoff respectively paid R3.4bn and R471m for these investments, settled though the […]

Governance and leadership

Governance and leadership are “the yin and the yang of successful organisations. If you have leadership without governance, you risk tyranny, fraud and personal fiefdoms. If you have governance without leadership you risk atrophy, bureaucracy and indifference,” says Mark Goyder, a British author and governance expert. A good board has a confluence of qualifications, talent, […]

A Sense of Purpose

“….society increasingly is turning to the private sector and asking that companies respond to broader societal challenges. Indeed, the public expectations of your company have never been greater. Society is demanding that companies, both public and private, serve a social purpose. To prosper over time, every company must not only deliver financial performance, but also […]