Prof. Amir Barnea resigned this morning from the board of Bank Hapoalim (LSE: BKHD; TASE: POLI). Barnea, one the leading banking experts in Israel, had served as an outside director on the Bank Hapoalim for a year.
An outside director, who serves as a watchdog on behalf of the public, is appointed for a three-year term and cannot be dismissed during this time. Barnea's early departure, which followed a meeting with Adv. Pinhas Rubin, an associate of Bank Hapoalim controlling shareholder Shari Arison, is unprecedented.
Barnea previously served as a member of the advisory board to the Supervisor of Banks at the Bank of Israel. Following the report by "Globes," the Israel Securities Authority will ask Bank Hapoalim for clarifications on the circumstances surrounding Barnea's departure. Securities Authority chairman Moshe Tery is concerned about the professor's decision to step down in the middle of his term and is seeking to find out whether it is a matter that deserves public scrutiny.
Barnea spoke to "Globes" today about his resignation.
Globes: Are you resigning because of events that have taken place at the bank?
Barnea: "Definitely not, and I stated as such in my letter of resignation to the board chairman."
Should the public, the customers and minority shareholders be concerned?
"I think not. If I had thought that there something that needed saying I would have told the public directly since that is my duty as an outside director."
Are you resigning because of the chairman Dan Dankner?
"Most certainly not."
Are you resigning because of the conduct of the bank's controlling shareholder Shari Arison?
"I have no direct contact with the controlling shareholder."
So why are you resigning?
"I'm stepping down because I feel that I have gone as far as I can in my current role on the board. I realized that my ability on the board as it is today is limited."
Do you feel that the current chairman and his representatives on the board made it difficult for you to do anything?
"Not up till now."
Did Arison's lawyer Pinhas Rubin contact you and convey to you her dissatisfaction with your conduct as board member?
"I had a number of private conversations with Adv. Rubin, and as these were private I am not about to comment or report on what was said."
Published by Globes [online], Israel business news - www.globes.co.il - on September 2, 2007
© Copyright of Globes Publisher Itonut (1983) Ltd. 2007