The decision of the National Bank of Ukraine (NBU) on the disqualification of five newly elected members of the Supervisory Board (SB) Oschadbank (Kiev, Ukraine) is an unprecedented challenge to corporate governance reform of state-owned banks.
This is stated in the joint statement of the members of the Supervisory Board of the state Bank published on the website of the financial institution.
“We, the members of the Supervisory Board of Sberbank, shocked and bewildered by the decision of the National Bank of Ukraine to disqualify five members of the Supervisory Board. Five highly qualified professionals with impeccable experience and reputation was disqualified from the qualification Committee of the NBU without explanation. In the absence of explanation, we can conclude only from the published release of the NBU that the real reason for the rejection of candidates was the dissatisfaction of some members of the NBU’s recent decision of Council to extend the labour contract with the Chairman of the Board oschadbanka Andrew Lush,” – said in a statement.
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As emphasized by the bankers, the decision to extend the labour contract with the Chairman of the Board Bank was made in full accordance with the statutory powers of the members of the national Assembly in accordance with the legislation of Ukraine and the Charter of the Bank and in full awareness of the NBU about such decision.
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“As a result, the NBU decision about our disqualification is, in our opinion, a violation of the law and could have undesirable consequences in the form of failure of corporate governance reforms in Ukraine at the stage of formation. It is a fundamental principle if the Supervisory councils are allowed to work only in the case when they make a decision in favor of the regulators, the reforms will have results,” – noted the members of the national Assembly.
The statement also stresses that the members of the Bank were elected in accordance with the requirements of the law of Ukraine “On banks and banking activities”.
In particular, the independent members of the national Assembly have passed a rigorous evaluation by an independent international recruitment company among the hundreds of internal and external candidates. In the process of selecting an international consulting company and the government-appointed nomination Committee has assessed all candidates for their compliance with the requirements of applicable law, including regulatory requirements of the NBU, and provided all the necessary documents for approval of the Cabinet of Ministers of Ukraine.
Representatives of the national Assembly said that two months the Supervisory Board of the Bank operates in accordance with the given mandate, in strict accordance with the current legislation of Ukraine, the banking legislation and the Bank’s Charter.
“It is crucial that all decisions related to the evaluation process of the Chairman of the Board was (and will be) taken in the presence of the representative of the NBU at the meetings of the Supervisory Board. This ensures awareness of the NBU in real-time on the work of the Supervisory Board”, – noted in HC.
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Also in the statement it is said that in the selection process were set high, taking into account international standards, qualification requirements to the Chairman of the Board oschadbanka and attracted international experts in search of management staff to conduct its evaluation for compliance with these requirements.
“After careful review, it was reported that the Chairman of the Board meets the requirements or exceeds them and is capable of moving the Bank’s strategy and mission. We also heard the results of activities of the Bank for five years, especially the last two, and recognized the progress made in the implementation of strategic plans approved in 2018 the Cabinet of Ministers and NBU,” – said in Oshchadbank.
In the absence of reasonable cause for removal of the Chairman of the Board from office and by results of work of the Supervisory Board have used their exclusive power to extend its work.
“If we did not approve this assessment, would be declared an open competition to find a new Chairman of the Board because this position would become vacant. No objection on the part of the representative of the NBU at the meeting of the Supervisory Board concerning the procedures for and in fact was not expressed. We are convinced of the correctness and legality of all our decisions. They are taken in the interests of the Bank”, – said in a statement.
The statement was signed by the members of the Bank Sevki acuner, Alexey Grinchenko Alexey Reznikov, Dmitry Vlasov, Baiba APIN, Michael Weinstein and Peter Briggs.
15 August the national Bank of Ukraine (NBU) has denied approval of five of the nine approved by the Cabinet of Ministers of the new members of the Supervisory Board of the Bank.
As the press service of the regulator, such decision of the Committee on supervision and regulation of banks, the NBU adopted after consideration of the documents, as well as testing and interview government-approved members of the Supervisory Board.