Romania: FP accuses weakening of corporate governance in Nuclearelectrica

Fondul Proprietatea (FP) expresses its disapproval and concerns regarding the two new points proposed by the Ministry of Energy in the convening notice of Nuclearelectrica’s General Shareholders Meeting scheduled for August 24, 2017, a press release reads, according to romaniajournal.ro.

Both amendments are in direct contradiction with corporate governance provisions and are expected to have a negative impact on Nuclearelectrica’s performance, as well as on its share value as a listed company, Fondul Proprietatea officials show.

“Following the similar situation at Hidroelectrica, making detrimental changes to the Board mandate contracts seems to be a common practice of the Ministry of Energy. Yet again, a new interim Board with watered down mandate contracts, allowing Board members to retain similar positions in other energy companies, including competitors, as well as scraping confidentiality provisions seems to be the Ministry of Energy’s way to elude the corporate governance law and potentially pursue other vested interests,” Johan Meyer, Co-CEO and Co-Portfolio Manager of Fondul Proprietatea, said, commenting on the implications of these proposals.

He points out that this situation raises serious concerns about the energy sector Board members’ accountability to act in the best interest of the company and not use their Board positions in companies like Nuclearelectrica and Hidroelectrica to serve other interests than those of the companies.

Firstly, Nuclearelectrica’s interim Supervisory Board is to be changed with another four-month Board, despite the fact that the expiration of the current board members mandate was known to all shareholders for months now.

According to FP, the company urgently needs a solid, full-term competent Supervisory Board, to help deal with the challenges and the opportunities Nuclearelectrica faces.

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