Controlling shareholder Shlomo Eliahu is leaving his last position at Migdal Insurance Company, and will remain only as a director at parent company Migdal Insurance and Financial Holdings Ltd. (TASE: MGDL). In return, the Commissioner of Capital Markets, Insurance and Savings is retracting the severe accusations that he has made against Eliahu and other members of the Migdal Insurance Company board of directors, paving the way for the approval of the appointment of new directors at Migdal Insurance Company and the replacement of its chairman Nir Gilad. This emerges from agreements reached between the sides on the solution that will bring to an end the confrontation between the board of Migdal Insurance and Financial Holdings and Commissioner of Capital Markets, Insurance and Savings Moshe Bareket.
A month after the Capital Markets, Insurance and Savings Authority sent Migdal Insurance and Financial Holdings a draft of an extremely severe audit report, it appears that agreements have been reached between the boards of Migdal Insurance and Financial Holdings and of Migdal Insurance Company fulfilling the demands of the Capital Markets, Insurance and Savings Authority, which will mean that the report will not be published as a final, conclusive and official document.
Eliahu, who had already agreed to step down from the board of Migdal Insurance Company, has now agreed to leave his post as chairman of Migdal's insurance agencies. In addition, Ronit Bodo will apparently step down from her position as chair of the Migdal board's Audit Committee. The Capital Markets, Insurance and Savings Authority does not object to her continuing as chair of the Financial Statements Committee of the board of Migdal Insurance Company.
Bodo recently filed a court petition against the findings against her in the Capital Markets, Insurance and Savings Authority's draft report. It is still not clear whether she will withdraw her petition, but resignation from the Audit Committee while the Authority shelves the report will presumably also lead to the petition being withdrawn
The agreements reached also pave the way to the appointments of Carmi Gillon and Moti Rosen as directors of Migdal Insurance Company, with the latter designated as Nir Gilad's replacement as chair.
The confrontation between Bareket and Eliahu and the rest of the board of Migdal Insurance and Financial Holdings began eight months ago when the board decided unanimously to remove Nir Gilad from the post of chairperson of Migdal Insurance Company and CEO of Migdal Insurance and Financial Holdings. Bareket would not allow the move, but the understandings reached, contained in a letter from the Capital Markets, Insurance and Savings Authority to Migdal seen by "Globes", will it seems avoid a finding by the Authority that the directors of Migdal Insurance and Financial Holdings, who also serve as directors of Migdal Insurance Company, were in breach of their fiduciary duty.
Published by Globes, Israel business news - en.globes.co.il - on December 6, 2020
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