Former billionaire Christo Wiese will step down as chairman of Shoprite, Africa’s largest grocer, next year according to a statement issued by the company.
Wiese has occupied the position of chairperson of the retailer since 1991 but has recently been under pressure from shareholders to stand down. Earlier this month Wiese was reappointed as chairman during the company’s Annual General Meeting after using his shares which have extra voting rights to retain his position, despite shareholders who control more than 61% of the shares opposing his reappointment. Wiese controls 42% of the voting rights in the Shoprite group – with almost a third of that coming from his shares with special voting rights.
Shoprite’s shareholders have called for a chairperson who is independent, complaining that Wiese’s shareholding presents a clear controversy because he has the power to push through changes and make decisions that meet his personal objectives, even if they are not necessarily in the best interest of the other shareholders.
Shoprite says it’s now looking to find a suitable independent successor to take over from Wiese.
“The board is of the view that, in line with good corporate governance, the next group chairperson should be independent, a view supported by Dr Wiese. As such the process to find a suitable independent successor has commenced,” the statement read.
