In its 7 May edition AlWatan reports that Mr. AlRabah was elected as Chairman and Managing Director of Commercial Bank's 100% owned subsidiary, Al Tijari Investment Company. Earlier today Advocatus, one of this blog's select group of readers and a frequent commenter, had posted a comment that Mr. AlRabah had resigned.
You'll recall that just about one month ago he was elected Chairman and MD at the bank in a stormy shareholders' meeting. And if you don't, here's the link. A bit more on that below.
The Kuwait Company Law does not permit an individual to be Chairman at more than one company so with today's election he had to make a choice. Perhaps, not surprisingly, he has announced that he will be resigning from the Bank.
Many critics out there, including AA, thought that CBK's shareholders' meeting in April - an admirable an attempt at great theater - failed because miscasting of some of the leads just made the plot unbelievable.
I have to say that this May production at AlTijari Investment Company is a bit thin also. He's barely had time to warm the Bank Chairman's chair and he's jumping to a smaller and less significant subsidiary.
It's hard to avoid the conclusion that Dherar was a convenient stalking horse, a placeholder at the Bank until the desired candidate could be introduced. In calmer times after the old Board was removed.
On a positive note, I think it's safe to say that all critics out there give both productions "two thumbs up - way up" for "Family Values".
Perhaps, Advocatus and/or others will want to post some "literary" criticism of their own.
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5 comments:
There is word of disquiet amongst some of the "Family" members at how another "Family" member has been running the bank and have apparently been complaining to "The Godfather". No profit, no dividend, bad loan portfolio, and IT system still being implemented after 5 years. The appointment of Dherar as Chairman seems to have been a step too far as there is word that he may have been involved in the Boubyan Bank IPO incident where one of the "Family" had to leave as Chairman. Dherar himself was surprised at being apointed Chairman, apparently receiving a call the night before the General Assembley from the "Advisor to the Godfather" telling him that he would be Chairman. Very embarrasing for the bank that after a month he now goes to the practically dormant CBK Capital. There is a rumour that the Deputy Chairman is also going; apparently he did not really want to be on the Board in the first place and does not like the long Board meetings reviewing the bad loan portfolio. Ali Mousa is the first reserve member and bank staff are expecting him to join from next week. He would have to resign from his position at Securities Group so we need to keep a look out for that.
Advocatus
Thanks.
Very informative.
I'll be watching to see how this all plays out. It's better than the TV or the movies!
Just a note guys, CBK no longer has as an MD position, so Dherar was chairman only. That means no monthly salary, just an annual 'compensation'. Apparently as he had to resign from his previous job he needed/wanted recurring income, and so the whole CBK Capital thing came about.
Doesn't explain why he agreed to become chairman in the first place though!
This is the story currently doing the rounds among CBK staff...
H AlEssa
Thanks for the catch on the MD at CBK. The only way to keep me "honest" is for sharp eyed readers to call out the mistakes.
As you note, the current explanation - he needed a steady paycheck - seems a bit weak. Seems like a question you'd ask early on in the discussions.
Also if that were a critical issue, I don't know of any regulatory reason why CBK couldn't have an MD. And why he couldn't occupy that position. Issue solved without a potential embarrassment. Though I suppose this could be an issue of ensuring good corporate governance. That latter statement reflects the existence of a highly theoretical possibility not a measurable probability.
But often mysterious things happen in the magical land that is Kuwait. It seems more than a few recently elected directors at another bank had to resign because they hadn't bought their qualifying shares.
I'm all in favor of "family" entertainment, but you'd think a rich country like Kuwait would be able to afford better writers who could come up with better plots. Something more believable like "Furry Vengeance".
The post of the MD requires the approval of the Central Bank (CB). The Board can elect one of its members and nominates him to be the MD, and then the nominee’s application is submitted to CB for approval which is based on strict criteria. The MD should poses qualification equivalent to those of a CEO.
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