South Africa's Old Mutual will appeal the high court's decision to temporarily reinstate Peter Moyo as CEO, who was fired in June, and to put a halt on any moves to replace him.
Moyo arrived at the company's headquarters this Wednesday, following the Johannesburg'a court decision, and was set to meet with Old Mutual and his legal team to resolve the situation, Moyo's lawyer Eric Mabuza told local media.
The court declared his dismissal unlawful and ordered that he be temporarily reinstated pending the outcome of the second part of his application.
Old Mutual is clear that there has been a complete and irreparable breakdown in trust and confidence in Mr Moyo"
For the insurer, since it will appeal the Johannesburg High Court judgment, Moyo is not "required or permitted to resume his duties".
"Old Mutual is clear that there has been a complete and irreparable breakdown in trust and confidence in Mr Moyo," the company said, adding that once the appeal is filed, the court order will be suspended.
Moyo maintains he should take up the reigns at the insurer with immediate effect following his victory in court.
"Their legal position is incorrect. The correct position is that an interim order is not suspended by an application for leave to appeal. If you want to suspend an interim order, you need to go to court to get the order suspended," said his lawyer, speaking to journalists at Old Mutual's offices in Sandton.
In firing Moyo, Old Mutual denied him of procedures laid down in his employment contract, the court found. The company's board argued that it was entitled under certain provisions in the contract to suspend and dismiss Moyo without a hearing.
Moyo was fired for the way he handled conflict of interest related to the share payments from NMT Capital, a company he co-founded.
Shares in the 174-year-old insurer tumbled after the ruling, falling to their lowest since the company moved its main listing back to Johannesburg from London in June 2018.