Perm seeks to change method of appointing its general director

Published: 5/18/1999

The Perm Motors annual meeting is to be held on June 25th 1999. One of the proposals at the meeting will be to empower the shareholders to elect the General Director. To date, this has been the responsibility of the board of directors. The reason for such a change remains unclear. Historically, the shareholders who are predominantly the Oneximbank controlled Interros and the board have shared common interests in fact the same interests. If it reflects a move towards a little more transparency towards both investors and business partners, Pratt and Whitney, then such a development is positive. We shall, however, reserve judgement. The annual meeting will also address the non-payment of 1998 dividends and the rise in share value from 0.4 roubles to 1.5 roubles. This latter is also being considered at a board meeting on May 18th 1999. In addition, it has been announced that Proton-Perm Motors, a subsidiary of Perm Motors, is to raise an issue of 48% of its share capital, in line with a decision made at its Annual General Meeting on May 6th 1999. It is reported that all the stock will be sold to the parent company, for the princely sum of one rouble. The reason for this move is not reported, but it could be speculated that it is an attempt to clean up Perm"s rather untidy privatisation.

Article ID: 513