PCL Directors Under Fire Over Unlawful Termination Case
Tension is escalating among the board members of Press Corporation plc (PCL) following a recent ruling by the Industrial Relations Court (IRC), which ordered the conglomerate to compensate three former top executives for unlawful termination of employment.
The court’s decision has led some minority shareholders to demand the removal of certain board members after former Group Chief Executive Officer George Partridge, former Group Financial Controller Elizabeth Mafeni, and former Group Administrative Executive and General Counsel Bernard Ndau were wrongfully dismissed under the pretext of retrenchment following a functional review.
Dr. Mukadam, a member of the Minority Shareholders Association of Malawi (MSHAM), expressed his shock at the board’s actions. He criticized the directors for failing to provide a reasonable explanation for the terminations and highlighted the absence of evidence regarding any board meetings or reports related to the functional review that supposedly justified the dismissals.
“We expect the directors to explain why they made such a haphazard decision to fire the three,” Dr. Mukadam stated. “It’s disheartening that they couldn’t even produce documentation to support their actions. Now we are left with the burden of compensating these individuals due to the reckless decisions made by a few board members. This is unfair, and I believe it’s time these directors should be held personally liable for such outcomes.”
Another shareholder announced plans to call for an extraordinary annual general meeting (AGM) to propose the removal of certain board members, including Chairman Randson Mwadiwa. “This is a major scandal, and we need to take decisive action to ensure that corporate governance principles are upheld,” he said.
In delivering the judgment, IRC Deputy Chairperson Tamanda Nyimba noted that the manner in which PCL terminated the services of the three executives did not reflect the high standards of corporate governance expected from such a prominent conglomerate. The court has mandated that the three former executives be compensated, though they have yet to submit their compensation package. Insiders anticipate that the amount could reach millions or even billions of kwachas.
The IRC is expected to announce a date for determining the compensation package for the three former executives in due course.
Follow and Subscribe Nyasa TV :