In the context in which the mandates of Hidroelectrica management were not prolonged due to the lack of quorum Friday, June 23rd, the Hidroelectrica Directorate convened the Ordinary General Meeting of Shareholders for July 18th, on the agenda being included the appointment of two provisional members in the Supervisory Board, it is shown in a company document.

Several sources in the energy sector said the new members of the Supervisory Board would most likely be Adrian Volintiru, a former secretary of state in the Ministry of Economy, and Karoly Borbely, Hidroelectrica’s strategy director, according to Agerpres. The company remained, due to quorum issues, without appointed management last week. There was a lack of quorum at the Supervisory Board meeting on Friday, and the management’s mandates could not be prolonged.

“The Ministry of Energy, in its capacity of majority shareholder in Hidroelectrica, expresses its public concern about the possible financial losses of the company, due to the blockade that occurs at the level of the management of the largest state power company in Romania. For a fair public understanding of the situation, we state that the mandates of current members of the Hidroelectrica Directorate have expired since June 25th, 2017, the company has been operating for the past two days without this management forum”, says a press release issued by the Ministry for investenergy.ro.

The imbalance came as a result of the constant refusal of the representative of Fondul Proprietatea to participate at the Supervisory Board meetings (CS), scheduled before June 25th, 2017, said the officials of the Ministry of Energy. On the agenda of the CS meetings there were proposals to fill the number of CS members and to appoint the members of the Hidroelectrica Directorate. According to Law 31/1990 and to the Hidroelectrica Statute, a CS decision may be taken in the presence of at least five members out of a total of seven, a condition for quorum assurance. Two of the CS members resigned and the quorum is secured only with the participation of Oana Truta, FP representative.

“Currently, following the resignation of two members, only 5 members are active in the SC. Thus, the presence of the representative of Fondul Proprietatea in the CS is absolutely necessary for the meeting quorum to be ensured, in order to appoint the members of the Executive Board. In the absence of the quorum in the SC caused by the lack of presence of the FP member, the Ministry of Energy, as a major shareholder of Hidroelectrica, proposed a new solution to overcome this situation of impasse”, said the ministry.

WHAT WILL THE NEW GENERAL MEETING OF SHAREHOLDERS VOTE FOR

The two new members of the SC will have a one-month mandate, which expires on August 19th. The General Meeting of Shareholders will also approve the form of the mandate agreement and their remuneration. At the same time, on the agenda of the new General Meeting of Shareholders there is also “the informing of the shareholders about the transfer, in favor of the BRD-ING Bank consortium, of the agreement for sale of electricity in the amount of 56 million lei for completing the guarantees up to the value of 110% of the amount drawn from the credit under the credit agreement 797/07.04.2015”.

At present, Hidroelectrica’s Supervisory Board has only five members, out of seven, as stated in the articles of incorporation. Last week, the Fondul Proprietatea, which owns 20% of the company, requested the revocation of four of the five members, as they would have wanted to appoint a new member of the company’s management without a transparent selection process, mentioning Adrian Volintiru’s name.

“The request of the Fund is determined by the fact that those members of the Council did not oppose the proposal that Mr. Petronel Chiriac, a member of the Board of Directors, would be arbitrarily replaced by Adrian Constantin Volintiru without first implementing a transparent selection process”, according to Agerpres.

Contacted by Agerpres, Ovidiu Agliceru, chairman of the Directorate, said he is on vacation this week and cannot comment on the matter.