MTDC Directors sack Chairman ahead of the annual meeting

Wednesday, 30 June 2010 08:29

Six directors of Maldives Tourism Development Corporation (MTDC) have signed a resolution Monday to sack its Chairman Ibrahim ‘Kuda Bandhey’ Saleem.

But a press release issued Tuesday by the company denied the reports that claimed that its Chairman was sacked Monday.

Haveeru, however, received the resolution endorsed by Secretary Fathimath Thahaanee Shihab. Directors representing the shareholders, including Ahmed Shareef, Hassan Zareer, Mohamed Saeed, Thoriq Ibrahim and Ahmed Shamheed and the government-appointed Director Nuha Nizam signed the resolution.

According to the resolution, the directors had to dismiss Saleem, because he failed to hold a meeting of the Directors Board despite repeated requests by the members and because Board meetings had to be called off due to his absence. The Chairman had been an obstacle to decide on several important matters ahead of the company’s annual general meeting set for 8.30pm Tuesday, the resolution added.

The Directors Board is authorised to appoint and dismiss the chairman under the company’s charter. The charter stipulates that the board’s quorum will be two Directors representing the government and three Directors appointed by the shareholders. The chairman should preside the annual general meeting.

A director who signed the resolution told Haveeru that the resolution did not require the quorum stated in the charter as it was a circular resolution. The director who wished to remain anonymous added that there was not a reason why Saleem could not be sacked, as six directors endorsed the resolution.

“We did this after seeking legal advice. Even earlier, we pass circular resolutions without considering the quorum,” he said.

A company official, however, stressed that the resolution was not valid, as circular resolutions required the quorum’s consent as well.

No changes have been made to any post of the company’s Directors Board since July 16, 2009, the press release added.


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