The Bank of Israel is taking steps to amend legal restrictions on the appointment of directors at the bank.
Preparations continue for the privatization of Bank Leumi (TASE: LUMI) via the stock market. The Bank of Israel, in conjunction with the Ministry of Finance, is taking steps to amend the "Marani law" in the Banking Ordinance, named after former Ministry of Finance director-general Ohad Marani. The change will allow the appointment of directors at Bank Leumi even if a candidate fails to obtain more than half the votes at a general shareholders' meeting. This will avert a situation in which no directors will be appointed at a shareholders' meeting held for that purpose because no candidate obtains more than half the votes.
The amendment dispels fears at the Bank of Israel about the functioning of the Leumi board and prevents the board from becoming paralyzed in the event that there is no controlling interest in the bank.
Published by Globes [online], Israel business news - www.globes.co.il - on August 24, 2009
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