OK Zimbabwe Agrees To Allocate 25 Million Ordinary Shares To Employees

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By Alois Vinga

LEADING retailer OK Zimbabwe has agreed to allocate a total 25 million ordinary shares to its employees in a move aimed at establishing a shared vision between workers and company’s shareholders.

Presenting an update on the just concluded Annual General Meeting, OK Zimbabwe’s company secretary, Margaret Munyuru said a resolution granting the greenlight to transfer the stake was passed.

“Directors were authorised to allocate 25,272,586 ordinary shares to the OK Employees Share Participation Trust through an allotment from the company’s unissued shares held under the control of the directors,” she said.

She said the allocation will be made at the end of each financial year through an allotment from the company’s unissued shares  as may be required should the Trust’s shareholding in the Company be below 2% of the issued share capital at the end of each financial year.

An Employee Stock Ownership Plan invests in the employer’s company with the goal being to align the interests of the employees with the interests of the company’s shareholders.

Business experts believe that by giving the employees a stake in the company, the employees move from being only workers to being owners of the company.

Munyuru said the company’s directors were also authorised to establish a share option scheme effective from the 1st of April 2022 to be called “Share Option Scheme – 2022” and to grant options in respect of the rules of the Scheme.

“Such options in aggregate not exceeding 63,181,464 ordinary shares, being 5% of the existing ordinary shares in issue as at 31 May 2021,” she said.

Shareholders at the AGM also confirmed the payment of a final dividend of 54 cents per share following an interim dividend of 26 cents giving a total dividend of 80 cents per share for the year ended 31 March 2021.

The shareholders also confirmed the retirement of Alex Edgar Siyavora from the position of group chief executive officer with effect from 31 March 2021 and his subsequent stepping down from the board of directors.

“The meeting also confirmed the appointment of  Maxen Phillip Karombo as Chief Executive Officer and director of the company with effect from 1 April 2021 and the appointment of  Simon Masanga to the board of directors with effect from 1 April 2021,” added Munyuru.