Nicosia - A temporary injunction suspending the right of former Laiki administrator Andri Georgiadou to vote on the new Bank of Cyprus board of directors has been withdrawn yesterday.
The Archbishopric and five others decided to withdraw their request against Georgiadou, who represents 18.1% of the Bank of Cyprus shareholders, as a result of a change in the Resolution Authority’s composition under new legislation.
Only days before the BoC General Meeting on September 10, the House voted to change the bank resolution law, limiting the authority of the central bank and adding to the resolution authority the finance minister and the head of the securities and exchange commission.
This means that Georgiadou’s decisions will now be subject to approval by all members of the resolution authority. Meanwhile, the District Court’s decision to determine the participation of “bad” Laiki in the new board is expected at 10.30am today, after the plaintiffs have challenged whether the 18% attributed to the shareholders is accurate.
Foreign shareholders representing between 12% and 15% of BoC and former Laiki depositors with 18% have already proposed candidates to sit on the new board, including the names of Russians, Ukrainians and Cypriots.
Representatives of BoC and Cyta provident funds who own 7% of shares also want to be part of the decision making.
The new board of directors, candidates are to be announced on September 5, will finalise the bank’s delayed restructuring plan.
Important decisions regarding the division of the bank into a retail and a property bank and the transfer of bad assets to the latter are pending.