Fondul Proprietatea challenges government’s nomination for Bucharest Airports managing board

On July 18, Fondul Proprietatea expressed concerns about plans of the Romanian government to appoint members of the managing board at Bucharest Airports Company (CNAB), where FP holds a 20% minority stake, with the breach of the corporate governance legislation at the general shareholder meeting on July 19.

The selection process was not transparent, five of the seven candidates “seem to be” employees of the state institutions (against a limit of two such members), and the identity of the candidates was not made public before the shareholder meeting despite clear requirements in this regard, according to Fondul Proprietatea.

Fondul Proprietatea requests that the Ministry of Transport and Infrastructure not approve the appointment of CNAB Board of Directors members for a four-year term and urgently initiate a new, fair, and transparent selection process for the entire Board of Directors.

“In our opinion, given the profile of the company and its importance for the country, the selection process must provide candidates who, through their professional experience and reputation, offer a minimum level of ensuring a fair treatment of all interested parties, including Fondul Proprietatea,” FP’s press release reads.

Johan Meyer, CEO of Franklin Templeton Bucharest and Portfolio Manager of Fondul Proprietatea, said: "We are deeply concerned about the implementation of corporate governance at Bucharest Airports (CNAB) given the failure to comply with the law in the selection process of the Board of Directors. Despite the critical importance of CNAB to Romania's transportation infrastructure, the process failed to comply with key legal provisions, such as limiting the number of civil servants and including a candidate with financial audit experience."

(Photo source: Franklin Templeton)