06/09/2013 13:07
The resolution authority decided by majority on Friday to authorize another person to vote on behalf of Cyprus Popular Bank instead of the bank’s administrator at the upcoming Annual General Meeting of Bank of Cyprus.
The creditors of the wound-down CPB own 18.1% of the Bank of Cyprus.
The Central Bank disagreed with the decision to give the proxy to anyone but the administrator arguing that the administrator Andri Antoniadou has the skills to effectively exercise the right to vote, as she was former chief executive of HSBC with international connections and reputation.
The regulator of the banking sector was outvoted by the Finance Minister and the chair of the Securities and Exchange Commission.
The Finance Ministry argued that they could authorize the Director General of the Ministry to vote on behalf of the resolution authority.
Another possibility is that the Finance Ministry and the Securities and Exchange Commission – and not the CB - will agree on a mutually acceptable person authorized to vote on their behalf.
The Minister reportedly believes that the person with the proxy should give instructions to the administrator as to who should be voted.
The resolution authority recently expanded to include the Finance Minister and the SEC.
After instructions from the Minister and the SEC Chair the administrator did not nominate any candidates to represent the 18.1%, the biggest shareholder, in the BOCY board.
The Bank received 49 nominations for the 10 to 18-member board.
The creditors of the wound-down CPB own 18.1% of the Bank of Cyprus.
The Central Bank disagreed with the decision to give the proxy to anyone but the administrator arguing that the administrator Andri Antoniadou has the skills to effectively exercise the right to vote, as she was former chief executive of HSBC with international connections and reputation.
The regulator of the banking sector was outvoted by the Finance Minister and the chair of the Securities and Exchange Commission.
The Finance Ministry argued that they could authorize the Director General of the Ministry to vote on behalf of the resolution authority.
Another possibility is that the Finance Ministry and the Securities and Exchange Commission – and not the CB - will agree on a mutually acceptable person authorized to vote on their behalf.
The Minister reportedly believes that the person with the proxy should give instructions to the administrator as to who should be voted.
The resolution authority recently expanded to include the Finance Minister and the SEC.
After instructions from the Minister and the SEC Chair the administrator did not nominate any candidates to represent the 18.1%, the biggest shareholder, in the BOCY board.
The Bank received 49 nominations for the 10 to 18-member board.
Related Articles
