Temirbank, a Kazakh lender taken over by the state after its default in 2009, skirted best corporate governance practice by relying on votes in absentia at its board meetings, said the lender’s parent, Samruk-Kazyna.
The bank’s board of directors approved “strategically important documents” with votes cast in absentia by proxy, Samruk-Kazyna’s representative told Temirbank’s annual shareholder meeting in Almaty on May 28, according to the minutes published on the Kazakh Stock Exchange’s website today.
The issues covered in the documents included credit policy, internal audit and other topics requiring a compulsory review, said the official, identified as A.I. Satybaldiyev, director of the legal department at TOO Samruk-Kazyna Finance.
Kazakhstan’s sovereign wealth fund Samruk-Kazyna holds the government’s 79.9 percent stake in Temirbank after it was brought under state control three years ago. The fund is discussing its merger with AO Alliance Bank, another lender taken over by the government in 2009.
While Temirbank’s board of directors met 42 times last year and considered 148 issues, only 26 percent of its meetings were face-to-face, Satybaldiyev said. That precluded detailed discussions at the meetings, which considered as many as 28 issues at each one, he said.
Shareholders elected Kanat Dosmukametov to Temirbank’s board of directors as a representative of Samruk-Kazyna, replacing Erzhan Shaikenov, according to the minutes. Temirbank Chief Executive Officer Erzhan Shaikenov was demoted to the post of first deputy CEO on April 27, while the bank’s former Chairman Murat Baisynov became CEO, according to Temirbank’s website.
Temirbank shareholders voted against paying dividends on ordinary shares, allowing the bank to keep last year’s net income of 1.37 billion tenge ($9 million), according to the minutes.
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