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Peter Moyo loses last ditch court bid against Old Mutual

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Peter Moyo wanted to have Old Mutual board members declared delinquent and in contempt of court. But the court dismissed both applications with costs. Photo: Gallo Images
Peter Moyo wanted to have Old Mutual board members declared delinquent and in contempt of court. But the court dismissed both applications with costs. Photo: Gallo Images

Former Old Mutual CEO Peter Moyo has lost his most recent court case against the company

Moyo wanted to have the insurer's board members declared delinquent and in contempt of court for blocking him from returning as a CEO in July 2019.

This was the Moyo's last hope since he already lost the bid to get R250 million from the insurer for contractual damages in January this year.

But a full bench of the Johannesburg High Court dismissed both Moyo's contempt of court and delinquency applications with costs.

"Old Mutual is pleased to put this matter behind us after three years of contentious litigation and to focus on growing the business well into the future, with good governance at all times its shining light," said Old Mutual in a statement.

The court found that the board members did not defy Judge Brian Mashile's order when they blocked Moyo from returning to his office.

Mashile had ordered Old Mutual to temporarily reinstate Moyo in July 2019, but Old Mutual blocked him when he tried to enter its Sandton offices as it was appealing that ruling. The company also argued that while Moyo couldn't get inside its building, it did reinstate him on paper. It reinstated his contract and paid him for a six-month notice period.

The court also found that the directors had acted in good faith on the basis of reasonable legal advice.

As for the delinquency application, the court found that Old Mutual directors also did not breach any of their duties to the company when the board decided to fire Moyo since the relationship between the two parties had broken down.

Instead, the court pointed the fingers at Moyo for breaching his fiduciary duties to Old Mutual. 

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