Bucharest Bourse head Ludwik Sobolewski announced in a press release dated August 21 that he would no longer act as CEO, in order to avoid legal complications.
The managing board of Bucharest Stock Exchange failed to extend, in its latest August 18 meeting, the term of office of CEO Sobolewski and this created “an unusual legal situation”, according to the press release. The situation had allowed Sobolewski to continue as CEO, until the managing board revokes him, according to the press release signed by Sobolewski.
Sobolewski wants another four-year mandate, but he is backed by only four of the eight board members. The ninth awaits central bank’s approval.
Bursa daily has constantly criticised Sobolewski for what it calls his lack of performance in his four-year term. The latest controversy over the insolvency of Romcab (listed on the stock exchange) revealed the poor supervision of the stock exchange over listed companies, while the Harinvest scandal a couple of years ago (related to frauds carried out by Harinvest brokerage house) hurt the credibility of capital market institutions.
The expansion of the local stock exchange still relies on IPOs of state-owned companies such as Hidroelectrica. On the upside, the local bourse hosted several successful IPOs, including the largest private IPO last year involving medical services provider Medlife.
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