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CompaniesCapitalia's shareholders reinstate chairman
As expected, the shareholders of the Italian bank, Capitalia, last month voted to reinstate its chairman, Cesare Geronzi.
Geronzi had been suspended from the board as a result of his conviction on bankruptcy charges. Italian law requires that a board member of a bank be automatically suspended if convicted. Two board members Roberto Coninno and Ernesto Monti were also reinstated in their positions.
The action by shareholders is discouraging given that in the last 12 months he has twice been suspended as a result of criminal proceedings, said Paul Betts in the Financial Times (16 January). Betts argued that while Geronzi had denied wrongdoing his continued presence risked not only the bank’s reputation, but threatened management attempts to modernise it.
With an 8.6% stake, ABN Amro is Capitalia’s largest shareholder, and Betts argued that the Dutch bank should show some sense of responsibility by at least abstaining on the vote to reappoint Geronzi. Instead, suggested Betts, ABN seems to be falling into the Italian habit of avoiding confrontation. Nor has any opinion been voiced by Mario Draghi, Bank of Italy governor, noted Betts.
LinksCapitalia
February, 2007 |
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