Indra’s board has been in turmoil since six independents left recently. This Tuesday saw Ignacio Martin San Vicente announce his resignation as director.
According to Indra’s statement to the National Securities Market Commission, the manager decided to quit the firm at that time in order to prevent the company from being completely blocked and allow the current management to form a new board. abide by the requirements of good corporate governance.
This process began Monday afternoon with a key meeting. The first step in the search to find new directors was made by the company’s members and presidents of various committees.
Indra’s board is practically empty after the departures of Ignacio Mataix, Marc Murtra, chairman, and Luis Abril as executives. Antonio Cuevas Delgado, Miguel Sebastian, and Francisco Javier Garcia Sanz are the only independent members. Martin San Vicente will be leaving his position, as previously stated.
Martin’s seventh appearance will take place in less than a fortnight after the resignations of Ana de Pro, Enrique de Leyva and Carmen Aquerreta, as well as the non-renewal by Isabel Torremocha, at the company’s last shareholders’ meetings. After Jokin Aperribay’s appointment as proprietary and the vote to dismiss the directors, the Government took control of Indra’s board through SEPI, with support from Sapa, Ambar Capital, and Joseph Maria Oughourlian (president of Prisa). Later, they were joined by Silvia Iranzo who was appointed as an independent external director at Tecnicas Reunidas.
This has caused a reputational crisis for the company. The company, in its Tuesday statement to the CNMV, stated that it will “scrupulously” comply with the requirements of the code of good corporate Governance. Rodrigo Buenaventura (the president of the supervisor) described the ‘assault on Indra as “worrying”, and asked the company to reestablish its independents as soon possible.
Indra should appoint four directors with this qualification in order to fulfill the requirements for good governance. This would allow Indra to have at least six directors and a total of twelve directors. A fifth name will be needed to join the search, as Martin San Vicente announced the departure at the end of October. If that does not happen, Francisco Javier Garcia Sanz would remain the sole independent.
According to the document Martin was appointed chairman of the appointments panel. He will oversee the selection process with Garcia Sanz, as well as the advice of a specialist consultant.
