The Amirov brothers, new owners of a controlling stake in the Shufersal retail chain, attempted to appoint Professor Yitzhak Shapira as the chairman of the board of directors with a part-time salary. This move was met with negative reactions in economic circles before the Securities Market Supervision Authority could voice its opinion on the matter. Before any decision was made, the Ministry of Health intervened and blocked the appointment.
The Amir brothers initially wanted to retain both positions for themselves as general director and chairman of the board of directors. However, this was not allowed by securities market management. As a result, they appointed themselves as general directors while Professor Shapira was intended to serve as a ceremonial chairman of the board of directors.
This decision sparked controversy and raised concerns about conflicts of interest in corporate governance. In response, the Ministry of Health intervened and prohibited Professor Shapira from holding both positions simultaneously. However, it left open the possibility for him to join the board of directors if he outlined a plan to prevent conflicts of interest.
The incident highlights the importance of transparency and avoiding conflicts of interest in corporate governance. It serves as a reminder that businesses must prioritize ethical practices when making decisions that affect their stakeholders’ interests.
In conclusion, while the Amirov brothers may have had good intentions when appointing Professor Shapira as chairman, their actions ultimately led to controversy and raised questions about ethics in corporate governance. The incident serves as an important lesson for businesses on how to avoid such situations in future and maintain transparency throughout their operations.
