COMBank, Sampath, Seylan conclude AGM sans major changes
Thursday, 2 April 2015 00:58
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Commercial Bank, Sampath Bank and Seylan Bank Plc concluded their Annual General Meetings on Tuesday without any changes despite speculation of a new face as the Chairman.
At the Seylan AGM incumbent Nihal Jayamanne PC came up for re-election and it was through. Former Commercial Bank Managing Director and senior banker Ravi Dias has been speculated to be earmarked to take over as the new Chairman.
Jayamanne was the only other Chairperson apart from Dr. Ranee Jayamaha at HNB who came up for re-election. Jayamaha resigned prior to the AGM. The other bank chairman who was asked to resign, Sunil Wijesinha at NDB, did not come up for re-election.
Given the stated intentions of the new Government, financial circles were expecting changes.
At Commercial Bank too no change took place with K.G.D.D. Dheerasinghe remaining as Chairman. At Commercial Bank the speculated name to succeed as new Chairman was criminal lawyer Rajeev Nanayakkara.
Sampath Bank’s AGM also saw no changes with shareholder director Dhammika Perera continuing as Chairman. Veteran commercial banker Amitha Gooneratne has been speculated to be earmarked for appointment at Sampath. This week saw NDB getting a new Chairman, the ex-Chairman of Hayleys N.G. Wickremaratne.
Analysts said that planned changes at the top as well as in the Board of Directors in some of the banks may take place in the coming weeks. The new appointees are likely to be recommended via the nominations committee or by respective shareholders, in this case state-owned entities.
However, others noted that several of the previous regime appointees did not come on to the bank Boards via as specific shareholder nominees communicated in writing. Some were allegedly recommended directly by the Central Bank or people with influence and the respective names were nominated at Board level formalising such appointments.
Nevertheless, allegations that some who are labelled appointees of the previous regime are not true since the nominations committees had independently earmarked such persons without any influence of the Central Bank or people with influence.
Policy Planning and Economic Affairs Deputy Minister Dr. Harsha de Silva’s outburst as reported in Daily FT on Tuesday that the stinking mess in bank Boards must be cleaned received mixed response from the industry. The Government was planning to use shareholding clout in these banks by state-owned entities.
Some noted that removal must be considered on a case-by-case basis and not across the board. Another view was that despite allegations that they were unfit and improper, it was not the case when it came to several.
Among appointees by the previous regime were respected and competent career central bankers and private sector professionals. The fact that they were related or close to people of influence of the previous regime was secondary or irrelevant as they were qualified professionals.
However, those backing the Interim Government’s move emphasised that it was important to have a fresh start with new faces. They also pointed out that those who were appointed during the tenure of the previous regime irrespective of professionals or otherwise should have ethically resigned with the change of Government than clinging on to their positions.
Analysts said there was a cold war within policymakers, regulators and the banking industry professionals and shareholders over the future of bank Boards.
