Lawrence Diamond, ex-CEO of Workforce Holdings Limited, has issued an application out of the High Court of South Africa (Gauteng Local Division, Johannesburg) against Workforce Holdings Limited, where he is claiming, among other things, that Workforce is obligated to pay him for his notional shares which he accrued under Workforce Holdings Limited’s Share Appreciation Rights Scheme.
Diamond is also suing Workforce for an unpaid, outstanding portion of his incentive bonus and profit share for 2015.
Workforce Holdings Limited is a public company and is listed on the Altx Board of the Johannesburg Stock Exchange. Until 31 December 2015, Diamond was the Chief Executive Officer of Workforce Holdings Limited. He was first appointed as a Business Development Manager in January of 2006, and he became the CEO from June of 2009.
This legal action happens on the back of attempts by Diamond to settle out of court, that have been rebuffed by Workforce Holdings Limited.
Diamond earlier this year instituted arbitration proceedings against a major shareholder of Workforce controlled by the Chairman of Workforce Mr. Ronnie Katz. These arbitration proceedings relate to a share option agreement where shares were promised to him. He made payment in respect of these shares and the entity failed to issue, transfer or deliver the option shares to Diamond. These arbitration proceedings are currently pending.
Both the amounts claimed by Diamond in the legal proceedings and the arbitration proceedings are material.