Shareholders in Credit Suisse want to block AGM

245
2
Shareholders in Credit Suisse want to block AGM

Some shareholders in Credit Suisse don't want the bank to hold a vote in the annual meeting on absolving senior executives from losses racked up in the Greensill affair, according to The Financial Times on Sunday.

The paper said investors have raised concerns with new Chair Axel Lehmann over the bank's decision not to publish a report on the lender's failings around the collapse of Greensill last year.

Credit Suisse posted a 1.6 billion Swiss Franc $1.72 billion loss as a result of the collapse of $10 billion in supply chain finance funds linked to Greensill and a $5.5 billion loss due to the implosion of the investment fund Archegos.

The directors can be held responsible for wilful or grossly negligent violations of their duties under Swiss corporate rules, with shareholders being asked to free them from legal liabilities for the previous year.

The vote will not apply to the directors' or management's liabilities, but only applies to facts that have been disclosed to shareholders and the claims of the company and shareholders who approved it.

How can we let someone off the hook when we don't know the full details of what happened? One shareholder told the FT.

Switzerland's second largest bank is working to recover assets from the collapse of Greensill.

The bank last month said it had recovered $7.3 billion in the funds it suspended in March 2021 and has filed 11 insurance claims.

The agenda for the AGM is due to be published by the bank in the coming days. A spokesman didn't want to make a statement to Reuters on Sunday.

Credit Suisse commissioned Swiss lawyers Walder Wyss and Deloitte to investigate the case.

The report that they produced has been completed and shared with the bank's board and Swiss financial watchdog FINMA, but there is no intention by the Board to publish the report, the bank said in February.