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BUSINESSMAN Mr Nick van Hoogstraten has strongly opposed Hwange Colliery Company's revised share option scheme to incentivise employees and forced postponement of the extra ordinary general meeting convened to pass the resolution.The Briton who holds a substantial stake in the coal-mining firm argued that the meeting convened on Monday this week was unprocedural.When it had become clear that the EGM's resolutions would not receive sufficient votes to go through, a shareholder then requested for its postponement to a later date.Share option schemes are used as an incentive for employees giving them the right to buy a certain number of shares in a company at a fixed price in the future. It is also a way to empower workers.Employees can generally exercise their option -- that is buying the shares -- after a specified period.

When employees exercise their options, it's at the price fixed at the date of grant that is when the options were given to the employee, regardless of the prevailing market price.The HCCL scheme, initially put in place in 2004 for 10 years, sought to offer workers, selected by the board, options to buy shares in the company, to attract and retain their services at a subscription value of 50 percent of the market value.It also sought to revise down the total number of share options the most junior employee was entitled to 375 from 2 000.Further, it sought to create a sense of belonging to workers and to motivate staff to achieve high productivity and loyalty.HCCL managing director, Mr Fred Moyo, maintained staff morale had become more important to avoid potential industrial action. Former employees seeking settlement on the share option scheme had also taken the company to court.

The share option scheme provided a pool of shares not exceeding four percent of the company's share capital.However, Mr Van Hoogstraten, said even taking into account the need to incentivise employees, the authorised shares were insufficient for the scheme.Mr Van Hoogstraten who has interests in several companies in Zimbabwe is the single largest shareholder with about a 35 percent stake. He lamented that proceeding with the vote was wasting time, as the requisite 75 percent would not be achieved.Although HCCL chairman Mr Tendai Savanhu decided to proceed with the ballot, a motion was moved to have the meeting adjourned.The meeting may take place after 21 days from the date of postponement.Herald Business can also reveal that the Zimbabwe Stock Exchange had queried the share option scheme and had written to Hwange seeking clarification which was not given.

Hwange Colliery has during recent years lost many professionals who sought better rewarding jobs outside the country. The mining company has also been experiencing problems with old equipment and is in dire need of recapitalisation.It has also suffered from reduced demand for coal especially from the Hwange Thermal Power Station which has been operating below capacity for some time.