Bank Hapoalim (TASE: POLI) today notified the Tel Aviv Stock Exchange (TASE) that it rejects the critical report by Supervisor of Banks Rony Hizkiyahu and his demand that it set up a search committee. Bank Hapoalim's board said, "We disagree with the conclusions of the report, which state that the board's decisions are invalid."
Bank Hapoalim's board told Hizkiyahu that on the basis of legal advice it had received, the board's decisions were legal, its conduct proper, and "from an administrative and normative perspective, its decisions were correct and promoted the interests of the bank, taking into consideration the objective constraints that resulted from the announcement of resignation of the serving CEO."
The board advised Hizkiyahu to enter into negotiations and meet with it in order to reach an agreement on the alternatives for an agreed-upon program of action for the appointment of a CEO to Bank Hapoalim.
The board added, "At the meeting held on March 25, at which the resignation notice of Zvi Ziv was delivered, the board believed that it was preferable to immediately appoint Zion Keinan as the next CEO of the bank, rather than the option of establishing a search committee for a CEO. It should be stressed that the board of directors believed it essential to discuss and decide on the issue of the appointment of a new CEO immediately after receiving Zvi Ziv's announcement, which made it clear that his decision was final and irreversible, and which required an immediate report that same day, and which was liable to cause uncertainties and disquiet among the bank's managers, employees, customers, shareholders, and other persons with which it has business dealings. This consideration takes on added weight during this period of global and local crisis, which increased the importance of retaining and strengthening the confidence in the banking system."
Bank Hapoalim's share fell 0.8% in early trading to NIS 9.84.
Published by Globes [online], Israel business news - www.globes-online.com - on May 12, 2009
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