All Board members were re-elected as per the annual general meeting ordinary resolutions with the exception of Mr J Molobela who withdrew his nomination to be re-elected as director with effect from 27 September 2013. Mr B du Plessis did not stand for re-election for the Board.
Shareholders are advised that Mr Jacques Schindehütte, the Chief Financial Officer of Telkom SA SOC Limited, (Telkom) has been suspended by the Board of Directors of Telkom (the Board) effective 24 October 2013, pending a disciplinary process. The suspension follows the findings of an investigation commissioned by the Board after certain allegations were made against Mr Schindehütte.
The Board has a duty to investigate and to test the validity of allegations, which are brought to its attention through an appropriate process, and will do this fairly, without favour or prejudice.
Mr Deon Fredericks will be acting as Chief Financial Officer of Telkom with effect from 24 October 2013 and will fulfil this role until such time as the disciplinary process against Mr Schindehütte is concluded.
A new forfeitable share plan was approved at the Annual General Meeting per Special resolution where no more than 5% of Telkom’s amount of issued shares will be allocated to employees.
Telkom announced during August 2013 that eligible employees have the option to transfer their post-retirement medical aid benefit to Liberty Life. The Company curtailed the medical cap increase to 0% as from 1 October 2013 for active members due to revenue remaining under pressure, rising operational costs and affordability. Of the 9 302 eligible employees 7 549 employees exercised their option to transfer their benefit to Liberty Life on 11 October 2013. The approximate net curtailment gain recognised is R2.2 billion.