Bank Leumi (TASE: LUMI) shareholder Shlomo Eliahu today petitioned the Tel Aviv District Court to order the bank to hold the general shareholders meeting on March 11, as originally scheduled, so that his candidate for director, Dr. David Klein, can stand for election.
Sources believe that Bank Leumi's board of directors will convene in a few days to consider Eliahu's demand. The board is expected to ask the Israel Securities Authority for its position on the matter before responding.
Eliahu wants to the court to annul the decision by Bank Leumi's board to cancel the March 11 general shareholders meeting. He also asked the court to rule that the decision was "made without authority, is illegal, and void, that the meeting will be held as originally scheduled, and the agenda will include the proposal to appoint Klein as a director of the bank."
Eliahu proposes that Bank Leumi hold the general shareholders meeting as scheduled, and that the shareholders vote only on the nomination of Klein. A future general shareholders meeting will vote on additional candidates for directorships. Eliahu initiated the shareholders meeting, using his right as the largest private shareholder in the bank, with a stake of 9.6%, and in accordance with the Companies Law (5759-1999).
In the petition, Eliahu, represented by Shiri Shaham and Barak Tal, partner at the Yigal Arnon & Co. law firm, criticized the conduct of Bank Leumi's board. "The conduct of Bank Leumi's board of directors as far as this meeting is concerned reflects confusion and embarrassment in decision-making and legal counsel. The board of directors does not have the right to act as it wishes in violation of the provisions of the law."
Published by Globes [online], Israel business news - www.globes-online.com - on February 24, 2010
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