Johannesburg, 13 Aug 2002
MGX`s Ronnie Price has resigned as non-executive chairman in accordance with corporate governance recommendations, but no reason has been given for his resignation as a director.
A JSE Stock Exchange News Service announcement issued late on Monday says Price has decided to step down as non-executive chairperson with immediate effect.
"He and his wife, Linda Wengrowe, have simultaneously resigned as directors of MGX," the statement says.
Patrick Landey, who was an independent non-executive deputy chairman, has been appointed to fulfil the role of chairman for the time being.
"The decision (by Price) was part of an ongoing corporate governance appraisal," says Landey, referring queries as to why Price quit the board to Price himself.
Recommendations made in the second report by the King Committee on Corporate Governance (King II) say that: "Preferably, the chairperson should be an independent non-executive director."
King II says there should be a clearly accepted division of responsibilities at the head of the company so that no individual has unfettered power of decision. Another recommendation is that the board should appraise the performance of the chairperson on an annual or such other basis as the board may determine.
Price has been chairman of MGX since the company was listed in 1995.
By 11.11am today, the MGX share price had risen 5c to 680c on the JSE.
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