Private shareholders left without a representative in FP management

The resignation of Corin Trandafir, the lawyer of Malaxa and Ausnit heirs, from the position of member of Fondul Proprietatea’s Representatives Committee has left private shareholders without a representative in the fund’s management, though they control 63% in the Fund’s capital. The Romanian state already has four representatives and has the power to appoint the fifth, as well.

As management was taken over by Britain’s Franklin Templeton in September 6, 2010, FP moved to a new management system: a single manager supervised by the Representatives Committee that is made up of four members and a chairman.

The main mandate of representatives is to supervise the fund’s manager, to convene the general meeting of shareholders, to approve the revenue and expense budget, to monitor investments and major deals in the portfolio and check out the meeting of yield targets. Also, the five can recommend to shareholders the cancelation of the management contract with Templeton if the move is deemed to be in shareholders’ interest.