The future of businessman Sipho Pityana as Absa board member remains uncertain.
The banking group’s Board on Friday announced its decision to immediately relieve Pityana of his duties as lead independent Director and Chairperson of the remuneration subcommittees.
Last month, Pityana instituted legal action against both Absa and the South African Reserve Bank for allegedly blocking his appointment to the chairmanship position at Absa.
In a statement, Absa did not provide reasons for its decision to demote Pityana.
A female employee at Anglogold Ashanti where Pityana served as the Chairperson of the Board has accused him of sexual harassment, which he has vehemently denied.
In terms of the law, shareholders can only remove a Board member through a vote during an annual general meeting.
Clear reasons
Experts say the Absa Board should give clear reasons for removing its member Pityana from performing other roles on the Board.
Corporate law expert Tshepo Mongalo says the Board has no powers to remove one of their own.
In the video below, last month, Pityana took Absa chairmanship fight to court:
