(COMTEX) B: Wellesley-Wood Survives Coup Attempt
B: Wellesley-Wood Survives Coup Attempt
Mar 05, 2002 (Miningweb/All Africa Global Media via COMTEX) -- Mark
Wellesley-Wood confirmed he would remain chief executive and chairman of Durban
Roodepoort Deep [NASDAQ:DROOY], following a bungled attempt to remove him from
the board today. Grant Fischer, non-executive director of Durban Roodepoort Deep
(DRD) and a director of Roger Kebble's Rand Leases, had compiled a memorandum,
approved by his legal team, stating why Wellesley-Wood was contravening the law
by remaining as chairman, and that he should be removed.
On Monday, Fischer called for an urgent board meeting in which he planned to
submit papers from Home Affairs spelling out Wellesley-Wood's South African
residency problems. In essence, the memorandum said that since Wellesley-Wood
was in violation of South African residency regulations he should be removed as
chairman and replaced by another. Pending Wellesley-Wood's efforts to return to
South Africa, his position could be reviewed within three months, the memorandum
said.
Instead Fischer did not call for the removal of his chairman; in fact,
Wellesley-Wood received the unanimous support of his board, including that of
Roger Kebble whose executive duties were suspended by Wellesley-Wood yesterday.
Fischer was also censured by the board for not following the correct procedures.
For instance, DRD did not have copies of papers of correspondence with Home
Affairs held by Fischer, which were used by him to motivate for the resignation
of Wellesley-Wood. Fischer could not be contacted by Miningweb.
"I am very encouraged by the support of the directors and this bodes well for
the road ahead," said Wellesley-Wood. He added that his legal adviser, Bowman
Gilfillan, was preparing a submission to South Africa's minister of Home Affairs
to win entry back to South Africa.
There must be questions, however, about the unity of purpose of DRD's board of
directors. Wellesley-Wood declined to comment on further changes that were
likely but, assuming he wins re-entry to South Africa, heads may roll. Already
non-executive director Ferdi Lips and executive directors Vic Hoops and Frans
Wiedermann have resigned from the board.
The matter also throws into relief the large rift in opinion between
Wellesley-Wood and Kebble, the two main personalities on the DRD board.
Shareholders may well demand clarity on the patent power struggle at the heart
of the company. The acrimony of the past few days also suggests that the
long-term link between the Kebble group of companies ? which includes JCI Gold ?
with DRD is also over, a development which the market may view positively.
by David Mckay
Copyright Miningweb. Distributed by All Africa Global Media(AllAfrica.com)
-0-
KEYWORD: South Africa
*** end of story *** |
