Alkis Hadjikyriakos Frou-Frou Biscuits (FBI) has rejected a call by a prominent shareholder and family member to discuss the matter of why the company is not implementing the CSE’s Corporate Governance Code at the forthcoming Annual General Meeting of shareholders scheduled for June 7.
FBI is citing a clause according to which shareholders may request to put topics on agenda of the AGM six weeks before the date, whereas the disgruntled shareholder filed her application on May 15 and 18.
Elena (Nora) Dikaiou, a major shareholder holding 1/20 of the capital of FBI and the sister of majority shareholder and CEO Alkis Hadjikyriakos, wants the AGM to be held on June 7, to oblige the board and management to enforce the CSE’s corporate governance code. In order to cover any expenses that might occur out of the process, she has paid the amount of CYP 100 and has pledged 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.Â
Dikaiou accused Alkis Hadjikyriakos, the main shareholder in FBI, who is reported to be holding 52% of the FBI 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 do not show that he is the beneficiary but there are trustees instead of him,†Dikaiou accused, adding that Alkis Hadjikyriakos treats the company as if it 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, which is informed in retrospect, she alleged.
“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 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 charged in a statement, but without producing proof to support her claims.Â
“This situation is burdened by the fact that the members of the board are employed by the company and they depend on Mr. Hadjikyriakos, who is regarded as their employer,†Dikaiou further charges.Â
CEO Alkis Hadjikyriakos did not wish to comment on these allegations.
