Dan Simionescu distances himself from the decisions of his colleagues on the Board of Directors of Sibex

• Sibex: The action of Dan Simionescu represents a conflict of interests

The conflict between the current management of Sibex and some of the company's shareholders has escalated after the Romanian National Securities Commission (CNVM) has postponed the General Shareholder Meeting, which was scheduled for last Saturday, and has led to a flurry of press releases on the website of Sibex.

On Wednesday night, the Bucharest Stock Exchange has published a current report by which administrator Dan Simionescu, who represents SIF3 Transilvania, presented his position which is "in opposition to the manner in which the meeting of the Board of Directors of Sibex was organized and held on September 21st, 2012, at 16:00".

According to the quoted press release, Simionescu reported that the daily agenda of the Board of Directors saw four very important additions.

"I want to mention that these additions to the agenda, were made illegally, were not subjected for approval and therefore were not voted on in the meeting of the board of directors", says Dan Simionescu.

He says that the meeting of the Board of Directors was suspended at 18:00 and it resumed without him being told about it at 22:30.

Therefore, the representative of SIF Transilvania informs the shareholders that he "fully opposes" the decisions of the Board of Directors, made after 22:30, including the decision to limit the voting rights of the five SIFs and of SSIF Broker, due to the claims of their acting in concert.

Dan Simionescu also says that the appointment of lawyer Gabriel Biriş as provisional administrator is illegal.

The CEO of Sibex, Cristian Sima, also replied in a current report, saying that, that being the representative of SIF Transilvania, Dan Simionescu should have abstained from voting on the issue of the SIFs acting in concert.

"The action of Mr. Simionescu Dan (...) is a conflict of interest given the position he holds at SIF Transilvania, specifically Head of the Equity Markets and Foreign Relations Department", the report by Sibex states: "Under these circumstances, we think that, even if he was present, he should have abstained from voting on the decision on the concerted action of SIF1, SIF2, SIF3, SIF4. SIF5 and SSIF Broker, for moral and legal reasons.

Sibex also says that the meeting of the Board of Directors of September 21st, began at 16:00 and ended at 3 AM.

Dan Simionescu also requested that the internal auditor and the financial auditor review the decisions of the Board of Directors made on September 21st, and that they be invalidated or ratified by the General Meeting of Shareholders.

"Concerning his request (ed. note: of Dan Simionescu) that the decisions of the Board of Directors made on September 21st, 2012, on the General Shareholder Meeting voting on the decisions made by the Board of Directors, even though we consider that the General Shareholder Meeting is the ultimate decision maker when it comes to any aspect concerning the organization and the functioning of the company, it must be said that so far, there is no decision of the General Meeting of the Shareholders of Sibex that restricts in any way the powers of the Board of Directors of Sibex set by the law of by the company's bylaws", Cristian Sima says in a report by Sibex.

On September 22nd, the shareholders of Sibex were expected to vote on whether to dismiss the Board of Directors and to elect a new one. The General Shareholder Meeting was postponed through an ordinance of the CNVM, issued on the night of Friday to Saturday.