The Dismantling of Corpcapital 


After the market lost confidence in Liebesman and the company following the controversies at the time of the merger in 2001, and following the complaints of misconduct by Frangos, the board of directors were faced with a choice of at least three courses of action. They could replace Liebesman and management and continue operating. They could leave management intact and continue operating, a difficult choice or, they could unbundle the company and sell the assets. On the recommendation of Liebesman and management this is what was done, and the board placed management in charge of the dismantling process, reporting to a board appointed committee. In the circumstances, many asked why the board did not appoint an independent merchant bank to conduct the sale of assets in order to achieve the best value for shareholders.

Sale of assets, opinion by WWB

The board of directors of Corpcapital authorized the sale of assets of the company in a phased manner. This process resulted in the eventual sale of all assets and Corpcapital was then placed into liquidation. Shareholders were not consulted on the major decision to dismantle the company in its entirety. They were consulted, as required by section 228 of the Companies Act, on the relevant individual disposals. Corpcapital thus complied with the letter of the law, opening a debate as to whether the Companies Act is in need of amendment. The WWB report outlines JSE requirements and section 228 of the Companies Act legislation.

Sale of Assets (24 April 03)
Notes on AGM 2003
Notes on AGM 2004
Notes on AGM 2005
The Way Forward document

Media reports on the dismantling of Corpcapital

Business Day 110803 – Bruised Corpcapital throw in the towel

Business Day 230104 – Lazarus defends Corpcapital’s move against criticism

Business Day 150803 – Liebesman quits Corpcapital in surprise move (MS Word 25kb)

Finance Week 280104 – Accounting the art of the (im)possible (MS Word 28kb)

Finance Week 080205 – Explanations not just accepted (Adobe Acrobat 145kb)

Finance Week 080205 – The value added debate (Adobe Acrobat 238kb)

Finance Week 260203 – Who does Wixley’s sums (MS Word 90kb)

Moneyweb 310105 – Ellerine waves goodbye (Adobe Acrobat 56kb)

Moneyweb 201206 – Peter K insider trading