EMPLOYEE TRUST SHARES
RESPONSE TO A DEMONSTRATION BY FORMER EMPLOYEES: DELTA EMPLOYEE SHARE PARTICIPATION TRUST SHARES
Delta Corporation Limited set up a share participation trust in 1991 to hold shares in the Company on behalf of the employees. This is codified in a deed of trust. The Trust is administered by a Board of Trustees with independent members with the accounts being audited by external auditors annually. At the inception of the scheme, employees were given a participation certificate which had a notional 100 shares entitlement. The original framework allowed participants a right to receive the value of the shares on termination.
WHO ARE AND WERE THE PARTICIPANTS
Participants were employees of the Delta Group as constituted in 1991 who would have served their employer entity for 5 years or more. Employees share in the dividends accruing on the Trust shares as they are paid by Delta. Participants have no beneficial rights to any shares in the Company. Participation ceases on termination of employment.
REVISION OF THE SCHEME FRAMEWORK IN 1997
The scheme was converted to a dividend participation in 1997. All the “100 share participation certificates” were redeemed for value and should have been surrendered to the Company at the time of termination of employment or on their redemption. These certificates are not Delta share certificates and do not entitle holders to shares in the
Company.
CURRENT POSITION
The Delta Share Participation Trust currently holds over 14 million shares in the Company. These shares have no vesting rights to any employee. A new empowerment scheme was introduced in 2008 which gave 5 000 shares to qualifying employees. These shares vested and the employees sold them for value in 2013.
DEMANDS BY SOME RETIREES
It appears that some retirees are claiming a non-existent beneficial right on the Trust shares; this is not provided for in the deed of trust, neither is it a condition of employment. This matter has been dealt with at various levels including by the Parliament of Zimbabwe, the Zimbabwe Anti-Corruption Commission and is before the Hight Court.
End
13 June 2018
Enquiries
Alex Makamure (DELTA CORPORATION, Corporate Affairs Director) Tel: 883865/ Cell: +263712614139