ART shareholders back chair Wushe despite governance concerns

By ETimes

HARARE – SHAREHOLDERS of ART Holdings Limited approved all resolutions at its annual general meeting on Thursday, including the continuation of board chair Thomas Utete Wushe, despite governance concerns raised over board tenure and independence.

Wushe, who has served on the board since 2015 and is also permanent secretary in the ministry of industry and trade, said the board would continue engaging investors and outlining its long-term strategy after the vote.

“I am pleased to confirm that all seven resolutions have been passed and the detailed voting results, including votes for, against, and abstentions are showing on the screen,” Corpserve Registrars said.

Wushe told shareholders the company would keep working closely with investors. “In success of the panel, the board remains committed to working constructively with all shareholders in the best interest of the business.”

Chief executive Milton Macheka said the group was focused on stabilising operations and rebuilding shareholder value, reporting a 7% rise in turnover driven by core units, although performance remained below target.

“I am happy to report that though we might not be at the level that we would have wanted to be at this stage, our turnover for the period has grown by 7%, due mainly to the contribution from the major businesses,” Macheka said.

He cited growth in batteries and estates, flat volumes at Eversharp and a 4% decline in Zambia exports due to a strategy to limit exposure, while noting foreign currency constraints in Malawi.

Macheka said margins improved slightly and asset disposals raised about US$1 million to settle legacy obligations, though cash flows remained tight.

“Looking ahead, members, the operating environment is going to be challenging,” he said, adding the company expected to stay on a recovery path.

Tensions emerged during the virtual meeting when shareholder Simon Hayes questioned board renewal and governance standards.

“Where do you see the good governance having a board which has not refreshed as the Zimbabwe Code suggests that you should?” Hayes asked.

Company secretary Abisai Chingwecha said governance and reporting concerns raised by shareholders were under review by regulators, including the Zimbabwe Stock Exchange and the Public Auditors and Accountants Board and that the company would comply with any directives issued.