Pharmaceutical company, GlaxoSmithKline, has announced the resignation of the board member, Tunde Lemo. Before Lemo’s resignation, he was involved in the company’s policymaking and planning exercises. He’s a former Deputy Governor of Operations and Director of the CBN.
His resignation from the Board of the company was approved at the meeting of the Board of Directors held two days ago, July 25, 2019 at GlaxoSmithKline House located at Ilupeju, Lagos. However, the resignation took effect from June 30, 2019.
Lemo’s resignation from his position as Independent Non-Executive Director of the company was announced on the Nigerian Stock Exchange (NSE) in a statement signed by GlaxoSmithKline’s Company Secretary, Uche Uwechia.
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Lemo’s duty prior to resignation: Although Lemo isn’t a member of the company’s executive management team, his duty made him to challenge the direction and performance of a company.
His position as Independent Non-Executive Director is important because non-executive directors are believed to understand the interests of the company based on objectivity and not to have a conflict of interests like the executive management or senior executives (C-Suite) who are often caught between satisfying the management and stockholders.
Part of the responsibilities of individuals in Lemo’s position is to monitor the executive directors and act in the interest of the company’s stakeholders.
Reason for Lemo’s resignation? The drug company didn’t reveal what led to the resignation of Lemo in the statement issued on the Stock Exchange, where GlaxoSmithKline has been listed since 1977.
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Series of resignation: Lemo’s resignation came two months after the company’s Managing Director, Bhushan Akshikar and the Finance Director, Kareem Hamdy, resigned. The company later appointed Kunle Oyelana as Managing Director to replace Akshikar, while Bosco Kirugi was appointed to replace Hamdy as Finance Director. Mark Pfister was also appointed as Executive Director of Consumer Healthcare – all in May 2019.
Why Akshikar resigned? Akshikar’s resignation was as a result of his reassignment to a new leadership role within the GSK Regional Vaccines organisation and completion of his assignment in Nigeria.
Note: The success or failure of a business is also attributed to the Non-executive directors.
