FBD Holdings and FBD Developments will hold EGMs today (Thursday) to allow shareholders vote on the proposed deal that would see FBD Developments acquire 100% of the property and leisure business, formerly operated as a 50:50 joint venture.

The EGMs will give shareholders their first opportunity to challenge the respective boards and management on their performance in recent years and the level of detail provided in the past on the performance of the insurance business plus the investments undertaken by FBD Developments.

It should not be about personalities but ensuring that FBD Holdings is put on the correct footing with structures that prevent mistakes of the past.

Shareholders must be convinced that the board and management has the capacity to rebuild the wealth destroyed in the past year.

For FBD Developments, a vote to accept the proposed deal will fundamentally change its DNA. It will shift from a debt-free investor in a profitable farmer-controlled insurance business to owning a low-margin property and leisure business. In doing so, it will take on high levels of debt at a time when future dividends and overall shareholding in the insurance business is uncertain.

Again, the debate should not be about personalities but the need for change in corporate governance in light of the level of debt and risk now attached to investments.