The boardroom brawl, which started in May when Old Mutual suspended Moyo and later fired him over an alleged conflict of interest, has weighed on the insurer’s share price and is threatening to tarnish its reputation after a court ruled that Moyo must be reinstated as his dismissal was unlawful.
Moyo is back in his job after the high court in Johannesburg ruled that he should be reinstated with immediate effect, sinking the share price by almost 6 percent amid looming reputational damage for the insurance company.
Old Mutual Ltd is appealing a court ruling that the South African insurer reinstate its fired chief executive officer, preventing Peter Moyo from reporting for duty as he had planned.
The company will argue in a higher court that it followed sound governance principles and gave Moyo enough notice of his termination, Old Mutual said in an emailed statement. The Johannesburg High Court had ruled that Old Mutual acted unlawfully when terminating Moyo, while also blocking the business from continuing a process of finding a replacement.