Watchdog group Movement for Quality Government in Israel today petitioned the High Court of Justice to block the appointment of Bank Leumi (TASE: LUMI) president and CEO Galia Maor as chairwoman of the bank. The petition follows a similar petition filed last week by Ometz Citizens for Proper Administration, Judicial and Social Justice.
The Movement for Quality Government has asked the court to issue an injunction ordering the appointment committee to explain, among other things, why it will not withdraw Maor's name in the list of candidates for directors at Bank Leumi, since her inclusion is in breach of the law which requires a cooling-off period. It adds that her membership on the bank's board of directors also raises conflict of interests.
The Movement for Quality Government says that Maor's nomination violates the principles of proper corporate governance. It asks why the appointments committee did not act in accordance with the legal opinion of Deputy Attorney General for economic and fiscal affairs Avi Licht, who reportedly supports the opinion of Ministry of Finance legal counsel Yoel Briss, and disqualify Maor from serving on Bank Leumi's board, as required by a government-public body.
The Movement for Quality Government also wants Bank Leumi's appointments committee to explain why is has not disclosed the list of qualified candidates it received from the public appointments committee. The organization also wants Bank Leumi's appointments committee to publish the protocols of its meetings on the candidates, including its discussion about Maor, so that the public can hold an open debate about the candidates' suitability for a position at one of the most influential companies in Israel.
The Movement for Quality Government wants Supervisor of Banks Rony Hizkiyahu to explain why he has not immediately expressed a public position against including Maor in the list of candidates for Bank Leumi directors.
The organization wants Governor of the Bank of Israel Prof. Stanley Fischer to explain why he has not used his authority, as stipulated in the Banking Ordinance, specifically Clause 5 D or the ordinance, to override the authority of the Supervisor of Banks and oppose including Maor in the list of candidates, since he is the supreme authority for the banks' stability and proper management.
The Movement for Quality Government wants the Attorney General Yehuda Weinstein to explain why he has not ordered the public appointments committee to withdraw Maor's candidacy from the list of candidates for Bank Leumi directors.
The organization also wants Weinstein to explain why he has not ordered Bank Leumi's appointments committee to choose another candidate from the list who meets the qualifications criteria, because Maor's candidacy damages the principles of proper corporate governance and the provisions of the law. It also wants him to explain why he has not ordered the bank's appointments committee to disclose the names of the candidates for directors.
Published by Globes [online], Israel business news - www.globes-online.com - on February 8, 2010
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