Bezeq Israeli Telecommunication Co. Ltd. (TASE: BEZQ) chairperson David Granot yesterday sent his response to the Elliott Associates fund's request for action to improve corporate governance in the company, and for replacement of Bezeq's board of directors. He thanked the fund for its interest and desire to improve the way the company functioned.
According to Granot, his impression during his six months as acting chairperson of the company is that the company's committees are working properly. He noted that during this period, the board of directors had not hesitated to make tough decisions on sensitive matters for the good of Bezeq.
Granot added that he did not allow conflicts of interest among the company directors, and was taking care to obey the law and the accepted rules in such cases. He explained that under Israeli law, directors are appointed at the company's annual shareholders' meeting, which is scheduled in early May.
At the end of his letter, Granot made it clear to Elliott Associates that he had heard loud and clearly the matters and concerns brought up in the fund's letter and in a meeting he held with it last week. He said that he planned to take these matters seriously when a list of candidates is proposed at the shareholders' meeting. Granot added that he believed that the list would include changes in the board of directors, and that the board of directors did not deal with the holdings structure of the company's controlling shareholder.
Since Elliott Associates' letter was published, other Israel and foreign investment institutions have joined its call for replacement of Bezeq's board of directors. Elliott Associates have probably not spoken their last word in the affair.
Published by Globes [online], Israel Business News - www.globes-online.com - on January 30, 2018
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