The European Bank for Reconstruction and Development (EBRD) is calling for extraordinary general meeting of shareholders of Victoriabank, Moldova’s third largest lender, to elect a new supervisory board and restore corporate governance.
In a public letter on 7 August 2015, the EBRD, currently holding a 15.06 per cent-stake, called on other shareholders of the bank to join the request to convene an extraordinary meeting. Under Moldovan legislation, investors representing 25 per cent of shares can call such a meeting.
The agenda proposed by the EBRD includes early termination of the powers of the current supervisory board of Victoriabank which has been suspended by a court order since September 2014 and the election of a new board.
“Shareholders in Victoriabank, including the EBRD, are entitled to have a role in the bank’s corporate governance. It is not satisfactory for a major bank in Moldova to be operating without a supervisory board particularly given the challenges the sector currently faces,” said Henry Russell, EBRD Director for Financial Institutions in Moldova, Ukraine, Belarus and Western Balkans.
Shareholders who want to join in the call for an extraordinary general meeting of shareholders with a similar agenda are being asked to copy the EBRD in their request to Victoriabank’s management.
Earlier the EBRD, a leading institutional investor in Moldova and a shareholder in Victoriabank since 1995, announced its preparedness to increase its stake in the bank with the aim of restoring effective corporate governance and ensuring its continued sound financial performance.