In the afternoon of two sessions ago, Monday, there was an announcement from MTN on the resignation of their CFO. Now, the resignation of any board member, other than a personal reason, or perhaps age (I guess that is personal) is always frowned on by the broader public and in particular the investment community. The reasons given may appear more sinister than they really are, but this is equally not good: "Mr Patel explained to the Company that he does not wish his continued employment with the Company to prejudice the Company in respect of certain allegations made against him, which are subject to an ongoing investigation which had been commissioned by the Company.". I guess immediately the morbid curious creatures that we are, we ask, what allegations? And often presume the worst, even paint the fellow into a guilty corner. You know what Steven Segal said about assumptions!!!
The MTN share price dragged the industrials complex lower, down by 2.78 percent on the day to 175 Rand a share. Until we hear further news, we have to assume that the company and the CFO are acting in the best interests of the people that own the company, the shareholders of course!! Issues related to corporate governance as far as we understand it. But what would that mean?