Board member selection in RO state-owned companies continues to raise controversies

Fondul Proprietatea (FP), a minority shareholder in the state-controlled company that operates Bucharest's airports, urges the Romanian Government to carry out a new selection process for the company's Board of Directors.

The fund argues that the selected candidates presented to the shareholders are "not credible".

"The Fund noticed that most of the proposed nominees lack relevant management experience and independence, most being politically connected or affiliated," according to the statement issued by FP.

The fund asks the Transport Ministry not to approve the appointment of these candidates into the Board of Directors of the Bucharest Airports Company and restart the selection process.

"Candidates with proven track records, who are free from political influence, should be given priority to help Bucharest Airports successfully navigate this unsettling period and unlock its potential," said Johan Meyer, CEO of Franklin Templeton's local subsidiary and portfolio manager of Fondul Proprietatea.

The reasoning behind FP's request shows that the selection procedure for board member nominees followed the corporate governance legislation, in theory, but failed to generate a desired or optimal outcome. It implies that the corporate management law might need amendments.

"The selection process was not consistent or coherent since it was managed by three different HR consultants.

The HR consultant who completed the final stage of the selection procedure.

(Photo courtesy of Fondul Proprietatea)