Migdal Insurance and Financial Holdings Ltd. (TASE: MGDL) controlling shareholder Shlomo Eliahu has resigned from the company's board of directors with immediate effect in accordance with the demands of Ministry of Finance Supervisor of the Capital Market, Insurance and Savings Moshe Bareket.
The resignation paves the way for the replacement of Nir Gilad who serves as Migdal chairman and CEO of parent company Migdal Holdings. He is expected to be replaced by former Menora Mivtachim Holdings Ltd. (TASE: MORA) and Harel Insurance Investments and Financial Services Ltd. (TASE: HARL) CEO Moti Rosen. "Globes" understands that Eliahu will remain chairman of Migdal Holdings.
Eliahu acquired a 68.5% controlling stake in Migdal in 2012. The shareholders meeting of Migdal Insurance, controlled by Migdal Holdings, decided to appoint Arie Mientkavitch, Azriel Moskovitz, Haim Ramon and Moti Rosen to the board and Gilad when he leaves will be replaced by Carmi Gillon. Rosen and Gillon will require approval from the regulator.
Eliahu's resignation from Migdal's board of directors is in line with the regulator's view that the controlling shareholder should not influence the management of the company, while the regulator should also not interfere with management, while the board of directors is fully independent. Nevertheless, Bareket will still need to approve the next chairman.
Published by Globes, Israel business news - en.globes.co.il - on October 15, 2020
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