OPSPI: The dual management system will bring balance to Transelectrica in the long term

The shareholders of Transelectrica must decide, in the General Shareholder Meeting of July 17th, whether they will change the manner in which the company is managed, from a "unitary system" to "dual management system". There are voices speaking against the proposal, claiming that the "dual management system" will make the decision process more difficult at Transelectrica, a company which plays a strategic part in the safety of the national energy system.

Remus Vulpescu, the head of the Office For The State's Interests and Industrial Privatization (OPSPI), who recently resigned from the Board of Directors of the Company, said that the reason and the usefulness of such a request consists of the fact that it makes it mandatory to separate the audit and management activities in the company.

He denies that the dual management system will make the decision making process more difficult: "In the dual system, we have the board of supervisors and the directorate. The dual system will ensure a more balanced system over the long term for Transelectrica. In other words, the CEO will lead together with other executive. Thus, the managers of the company will have more similar rights and will lead together, instead of all of them being subordinated to one. The Supervisory Board is an equivalent of the Board of Directors, but with supplemental functions, more similar to the German model".

The head of the OPSPI claims that for now, the dual system is only being proposed for implementation at Transelectrica: "For the other companies, we want to see what the candidates selected for professional management want to say. They can propose the change of the unified system if this will help them meet the objectives of the business plan".

Also to be decided in the General Shareholder Meeting of Transelectrica of July 17th is the amendment of the articles of incorporation of the company, if the implementation of the dual management system gets approved, as well as empowering the Board of Directors to draw up and propose an appropriate corporate Governance Code. The shareholders will also have to empower the Board of Directors to adapt the procedure for the selection of private managers as needed.