Belgian tanker shipping company Euronav believes that the recent request from its shareholder Compagnie Maritime Belge (CMB) to replace the entire Supervisory Board is not a good idea, reports Offshore Energy.
CMB’s request came on the back of the fallout between Euronav and John Fredriksen’s Frontline on the planned mega-merger. CMB was against the merger plans at the outset and is now seeking to dismiss the entire board and replace them with members nominated by CMB.
An ‘unprecedented’ request
Euronav described the request as ‘unprecedented’ by a minority shareholder, adding that the company has reached out to CMB for more details on their strategy and intentions for Euronav.
“An immediate and abrupt replacement of the entire board, without any transitioning or succession planning, is not in line with those principles and Belgian corporate governance standards. Euronav therefore cannot support or recommend such an idea. Euronav shall also ensure that its strategy, track record and approach are clearly summarised for all of its shareholders ahead of the general meeting,” Euronav said.
Euronav added that it would prefer to continue to seek a constructive discussion with all its shareholders including CMB. The reaction comes on the back of Euronav’s filing for arbitration against Frontline’s decision to terminate the merger agreement, stressing the decision was unfounded.
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Source: Offshore Energy