President appoints new directors in Codelco and clears the way for capitalization
The designations caused surprise as none of the chosen professional have relationship or specific knowledge of the mining business.
Complying with the provisions of the Law on Corporate Governance, yesterday the government reported the names of the three new directors of Codelco rightful designate by the President of the Republic, one of which also will hold the presidency of the state mining company.
That is the case of the economist Oscar Landerretche Moreno, who is a socialist and will happen in this responsibility to Gerardo Jofre, who as set forth for the periods set by the rules, could remain on the board until May 2017.
The designation of the President also includes the lawyer Laura Albornoz, who is linked to the Christian Democrats and fellow economist Dante Contreras, who not militate in any political party
This decision caused surprise overall, not only because new directors whose positions-run until 2018 – no better linkage or experience with the mining business, but also because two of them, economists from the University of Chile, had sounded among dozens of names circulated to fill these quotas, until on Saturday corresponded to Fernando Porcile (civil mining engineer and former president of Collahuasi), Juan Luis Ossa (lawyer experienced in mining legislation and investment in the sector) and Andrés Tagle (engineer with experience in insurance).
In the case of the former head of the National Women’s Service was another situation as the armchair in Codelco was one of several options for which shuffled her name.
The government, through spokesman Alvaro Elizalde said that “the challenge of the new directors is to improve the competitiveness of the copper company in order to maintain global leadership of the main Chilean state enterprise”.
From Argentina, country she visited as part of the delegation of President Bachelet, the Minister of Mining, Aurora Williams, coincided with the appreciation of the palace, while the unions of the state company, through the chairman of the Workers Copper Federation (FTC), Raimundo Espinoza, were cautious with the designation, including the new president of the corporation. –
For some lawyers the interpretation that the government made regarding the experience requirements for Codelco’s director could be debatable.
The rule states that one should “establish a professional experience of at least five years, continuous or not, as a director, manager, administrator or chief executive in public or private companies, or charges of first or second-tier public services” .
The only exception to the above applies to workers representatives.
It was reported that the activities of the new directors of Codelco will begin shortly, as one of the government decision would be that President Bachelet include ad Cap Codelco in his speech next Wednesday, May 21st, forcing to advance the next meeting of the board of the state company, which is usually done the last days of each month.
“It would be important that before May 21st the board to convene and discuss the cap so that the president can address this issue with representatives of the business as reported,” said a close to the state company.
In its new form, two of the nine directors of the state comapny, except for representatives of workers (Raimundo Espinoza, from the FTC, and Augusto Gonzalez, from supervisors and professionals) have links with the mining business.
This is Marcos Lima, who was CEO of Codelco, and Mark Buchi, through Ultraterra is related to coal mining in Minera Isla Riesco.
From the practice of the law of Codelco’s corporate governance, in force since 2009, the role of president of the state company is not less, because it is responsible for driving the relationship between the company and the representatives of the owner, ie, the State through the ministers of finance and mining.-
Source: Diario Financiero
