Telkom shareholders have backed the re-election of the telecommunications group’s directors and the appointment of its board committee members.
However, they showed resistance to proposals that would give the board broad powers to issue shares.
At Telkom’s annual general meeting (AGM) yesterday, shareholders representing about 84.4% of the company’s ordinary shares voted on most resolutions.
All four directors put forward for re-election received support. Makhotso Qhena was re-elected with 99.17% of votes cast in favour, while Olebogeng Ighodaro received 98.65%, Khumo Rayner 99.74% and Brian Kennedy 99.67%.
Telkom appointed Qhena as independent non-executive director and chairperson of the board of directors in 2023. He replaced Sello Moloko, who stepped down from the role in 2022.
Rayner was also elected as a member and chairperson of Telkom’s audit committee, while Patrick Luthuli, Khumo Lebina, Professor H Singh and Ighodaro were elected as members.
The company’s social and ethics committee appointments also received backing, with support ranging from 99.38% to 100%.
Shareholders also approved the reappointment of PricewaterhouseCoopers as Telkom’s external auditor and Sibabalwe Nangamso Madikane as the engagement partner, with 99.94% of votes cast in favour.
However, the strongest opposition at the AGM was directed at resolutions giving directors authority to issue shares.
A proposal granting the directors general authority to allot and issue ordinary shares and/or grant options over ordinary shares received 87.92% support, with 12.08% voting against it.
A separate resolution allowing directors to issue ordinary shares for cash attracted 86.84% support, while 13.16% voted against.
These were by far the lowest levels of support recorded among the ordinary resolutions at the meeting.
The resolutions nevertheless cleared the required threshold and were approved.
Shareholders also approved Telkom’s remuneration policy for the 2026 financial year, with 97.80% voting in favour, while 98.81% backed the remuneration report.
The company’s non-executive director remuneration was approved with 99.93% support.
Other special resolutions also received backing, including authority for Telkom to provide financial assistance, which was supported by 99.52% of votes cast, and authority to repurchase ordinary shares, which received 98.65% support.
The AGM voting results show that institutional and other shareholders participating in the meeting broadly endorsed Telkom’s board and governance structures, while a minority expressed concern over the potential dilution associated with future share issues, says the telco.
The resolutions were voted on against a backdrop of Telkom’s ongoing focus on strengthening its balance sheet and investing in its network and growth areas.
Share
