Scangroup chief executive officer Bharat Thakrar has resigned from the company he founded.
This follows a suspension weeks ago over allegations of gross misconduct.
On February 18, 69 years old was suspended alongside his chief finance officer Satyabrata Das.
On Wednesday, the firm announced to financial markets that after the cautionary measure, Thakrar tendered in his resignation as a board member and CEO, alongside his CFO.
“Mr Thakrar additionally resigned as the director of the firm’s affiliates and subsidiaries. The investigation about possible offences and gross misconduct against the two will go on,” read the statement in part.
New chief executive officer
The board disclosed it’s in the process of recruiting a new CEO to fill the vacant position.
“The Board has in the interim delegated Mr Alec Graham the Chief Operating Officer to continue managing the company, with support of board members and senior executives subsidiaries,” the statement read further.
It’s a hard time for a man who founded the firm’s marketing services and has now been shown the door after selling a stake to WPP.
Following the CFO’s suspension, it’s possible the two face allegations of financial nature.
It’s the first time an NSE-listed chief executive has faced public sacking or suspension for ethical misconduct. Most companies resort not to reveal the reasons behind the departure of their leaders.
Mr Thakrar held the position since 2006 after making it public, a move that saw an initial public offering (IPO) that raised Ksh 94 million.
At the time, he was the top shareholder with a 28.53 per cent stake, with his holdings valued at more than Ksh 1 billion.
Currently, his ownership mark market stands at about Ksh 250 million.
He’s sold his shares over the years, which saw his ownership drop to the current 10.6 per cent.
WPP, a UK-based conglomerate, has, on the other hand, raised its stake, making it control 56.3 per cent of the company.
This is through it folding some of its subsidiaries and a mix of share purchase into Scan group.