Johannesburg – Jim Volkwyn has announced his retirement from the MultiChoice Board, a move that effectively averts a potential showdown with the Public Investment Corporation (PIC).
Volkwyn’s departure comes as a strategic resolution to avoid further conflict.
His decision to step down will be effective from the upcoming annual general meeting on 28 August 2024.
On Sunday, the PIC announced its intent to block the re-election of a MultiChoice board member due to concerns over questionable consultancy fees, Business Times reported today.
The PIC, the largest asset manager in Africa with a 15% stake in MultiChoice, is the company’s second-biggest investor after French entertainment giant Canal+.
The PIC has criticized the continued payment of millions in advisory fees to Jim Volkwyn, one of MultiChoice’s longest-serving board members.
MultiChoice informed TechFinancials this week that the controversial consultancy agreement with Jim Volkwyn, who is up for re-election at the company’s AGM on Wednesday, will expire in 2028. By then, the agreement will have run for a decade and earned Volkwyn over R10 million.
The renewal of this consultancy contract contradicts board chair Elias Masilela’s previous commitment to review such agreements.
MultiChoice Group today announced in a statement to the JSE that Volkwyn has decided to not stand for re-election to the Board of Directors (Board).
“As a result, resolution 2.3 contained in the annual general meeting (AGM) notice for the meeting to be held on Wednesday, 28 August 2024 will be withdrawn andCVolkwyn will retire with effect from the same date.”
The company added: “Volkwyn has served MultiChoice with distinction for more than 33 years, including previously as CEO of the global video entertainment business under Naspers and then as an independent non-executive director of the Board from MultiChoice’s listing in 2019″.
MultiChoice said it would also like to clarify the following in relation to Volkwyn’s consultancy arrangements:
- the consultancy arrangements were at all times disclosed to shareholders;
- the consultancy arrangements are lawful in all respects, as was confirmed by external
- legal advice; and
- in approving the consultancy arrangements, the Board at all times ensured compliance
- with corporate governance requirements.
The board expressed its “deep gratitude” to Volkwyn for his “invaluable contributions to the group over the years.”
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*This article first appeared in our sister publication TechFinancials
