Frou Frou shareholder wants Corp Governance

Elena (Nora) Dikaiou, a major shareholder in Alkis Hadjikyriakos Frou-Frou Biscuits (FBI) has submitted a request to the company to discuss the issue of enforcing the CSE’s Corporate Governance Code at the forthcoming Annual General Meeting of shareholders.

Dikaiou, holding 1/20 of the capital of FBI wants the AGM, to be held on June 7, 2007 to force the Board and Management to enforce the CSE’s Corporate Governance code. In order to cover the expenses, she has paid the amount of CYP 100 and is willing to pay more.

The main aim of  the Corporate Governance Code is the strengthening of the supervisory role of the Board of Directors, the protection of the smaller shareholders, the adoption of transparency and prompt information, as well as the safeguard of balance and independence of the BoD. 

Dikaiou accused Alkis Hadjikyriakos, the main shareholder in FBI, who is reported to be holding 52% of the capital of not revealing his true stake in the company. “We don’t know because Alkis Hadjikyriakos refuses to provide information on the purchase of shares on his behalf via Trusts Jupiter, Galaxy, Capital Growth, Harrison Equity, Pegasos Holding and JCS Equity.  The Trusts dos not show that he is the beneficiary but there are trustees instead of him,” Dikaiou accused, adding that Alkis Hadjikyriakos treats as if the company is his own personal property.  He takes decisions on issues of great importance, including investments of millions of pounds without a prior examination by the Board of Directors, which is informed in retrospect.  Mr. Hadjikyriakos discharged Executive Vice Chairwoman, Mrs. Dikaiou, second major shareholder due to her insistence to adopt the Corporate Governance Code.  He did not allow to the Vice Chairwoman to inspect the Company’s books and refused to provide information and analyses on the Company’s financial statements.  There were also cases of distortion of the minutes of the BoD meetings dated 31.1.207 and 6.4.2007, Dikaiou said. 

“This situation is burdened by the fact that the members of the Board of Directors are employed by the Company and they depend on Mr. Hadjikyriakos, who is regarded as their employer, “Dikaiou further charges.