CEO quits over infidelity scandal 

I work in corporate communications at a mid-sized company in Dar es Salaam. Last week, our CEO abruptly resigned after a private scandal involving infidelity with a junior company employee came to light. The news spread like wildfire on social media. There has been no official explanation beyond his resignation letter. Some members of staff are wondering whether the Board of Directors had the right to force his resignation due to a consensual relationship and if this private matter had any legal bearing on his role. Could you explain what Tanzanian law says about such scenarios?
MJ, Dar es Salaam

Thank you for raising this question, which touches on both corporate governance and workplace relations in Tanzania. The information you provided is limited for us to comment on the Board’s decision. However, for a CEO whose public image is closely tied to the company’s brand and integrity, personal misconduct may have serious consequences. While infidelity is not illegal per se, it is a violation of the code of conduct which most companies have that restricts relationships at work and requires disclosures where they exist. In some companies, such a relationship may be viewed as gross misconduct, resulting in severe consequences, particularly for high-level company officials who have relationships with junior employees. The power imbalance affects the defence that it was a consensual relationship. Further, a CEO having a relationship with company employees may not align with fiduciary duties under the Companies Act, Cap. 212 [R.E. 2023], especially the duty to act in the best interests of the company. Courts in various jurisdictions have interpreted this duty widely to include prohibitions on having undisclosed sexual relationships with employees.

In summary, infidelity is not illegal under Tanzanian law. However, it can have indirect legal implications for executive leadership, as it often conflicts with the codes of conduct governing employees and the corporate governance standards required by law. Consult your human resources officer to understand why the company took this extreme measure or if the CEO resigned voluntarily.