Group Five shareholder seeks board shake-up

19 May 2017

JSE-listed construction firm Group Five has warned of a possible board shake-up.

The company on Thursday said a shareholder had notified it that it will seek to call an extraordinary general meeting to call for the reconstitution of Group Five’s board of directors, following a disagreement with the board on the future direction of the company.

Group Five earlier this month announced that it has split its lossmaking Egineering & Construction (E&C) cluster as part of its restructure to deliver more focused businesses with appropriate resources and cost bases relevant to the regions and service offerings provided.

The poor performance of the E&C business had contributed to Group Five posting a R343-million operating loss for the six months ended December 31, 2016.

The company has also embarked on a retrenchment process to right-size the company.

Eric Vemer resigned as CEO of the group in February, with the process to appoint a successor still under way. 

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