BY DESMOND CHINGARANDE
Waverly Blankets founder the late Victor Cohen’s children are on the verge of losing his business empire after one of their relatives allegedly changed the company’s ownership without their knowledge.
Cohen, a prominent Zimbabwean industrialist and philanthropist, died in South Africa in 2017 where he was receiving treatment. He left behind a sprawling business empire that also includes Waverly Plastics.
His daughters who are based in Cape Town, Amanda Berkowitz and Belynda Halfon, have since taken their nephew Aron Vico to court, accusing him of pushing them out of Waverly Blankets through corrupt means. Vico is the son of Cohen’s other daughter Debra.
Berkowitz and Halfon, who held shares in Waverly Blankets, said they were shocked when they received communications that they had been booted out of the company after they father’s death.
As if that was not enough, Vico is already in the process of taking Waverly Plastics where the two sisters held a 33% stake each.
Berkowitz and Halfon in court papers argued that on January 18, 2017 Vico, who is now representing Waverly Blankets, unlawfully instructed AA Omar and Company, an accounting consultancy firm, to effect changes to Waverly Plastics shareholding by allotting 255 shares to himself and 145 shares to the late Cohen.
They alleged that at the time Vico was just an employee and had no authority from the directors or shareholders of the company to carry out the share allocation.
- Chamisa under fire over US$120K donation
- Mavhunga puts DeMbare into Chibuku quarterfinals
- Pension funds bet on Cabora Bassa oilfields
- Councils defy govt fire tender directive
Keep Reading
Cohen’s daughters said Vico fraudulently acquired a company registration (CR14 ) form that indicated he was a director at Waverly Blankets from September 2013. However, there was no shareholder resolution appointing him.
Vico allegedly submitted the CR14 form written Aron Vico nee Cohen, which purported he was a woman. The two sisters believe this was meant to deceive the registrar of companies into believing that Vico was Cohen’s child.
Berkowitz and Halfon said on May 22, 2017 Vico signed a CR2 return of allotment at the registry when he was not a director of the company and also when he was not authorised or permitted to do so.
“In light of these facts supported by the evidence adduced, the allotment of shares done by Vico was not only fraudulent, but also amounted to theft of shares of the company,” the two sisters submitted.
They argued that Vico was a manager and had breached his duty of good faith by issuing himself shares in the company without the authority of the board and shareholders.
Berkowitz and Halfon, however, failed to block Vico from accessing Waverly Plastics bank accounts.
They had filed an application seeking an order to remove Vico as a signatory to the company’s bank accounts held at First Capital Bank, Standard Bank and CBZ.
This was after a board meeting where it was decided that Vico’s contract as manager should be terminated.
But High Court judge Justice Happious Zhou dismissed the application on a technicality after Vico was cited as a manager in some of the evidence and director or shareholder in others.
The judge said he was not convinced that a mere manager would be made the sole signatory of company accounts which had balances running into millions.
Berkowitz and Halfon have since appealed Justice Zhou’s ruling saying he erred in law and grossly misdirected himself in rejecting the resolution of the directors.
They submitted that the ruling was made despite the fact that the judge had evidence of doctored CR14 forms, falsehoods and non-disclosure, as well as affidavits with fake signatures. The case will be heard at the Harare High Court on Wednesday.
Waverly Blankets was set up in 1995 and grew to become one of the leading manufacturers of blankets and bedding linen in the country. It has retail shops in other cities outside Harare.
