Cape Town-based fund manager Vunani Fund Managers (VFM) is embroiled in a row with clients and staff over the ‘suspension’ of its chief executive Romeo Makhubela.
Makhubela was supposedly suspended not by his board nor by his chair- man Butana Khoza, but by the chief executive of holding company Vunani Limited, Ethan Dube.
Dube might have t he power to have done so as the founder and chief executive of the listed Vunani Limited, owner of VFM. However, good corporate governance would suggest that the executive management and board of the fund management company ought to be empowered to execute management imperatives over the affairs of its own business.
It is not clear why the decision to suspend Makhubela was not taken by Khoza.