The Romanian Transport Ministry has decided to revoke the administrative board of the Bucharest Airport Company, which operates Romania’s main airport at Otopeni, and replaced it with a new interim board, according to an announcement from Romanian investment fund Fondul Proprietatea, which holds 20 percent of the company’s shares. The Transport Ministry controls 80 percent of the company's shares.

The members of the board were Radu Merica, who was president of the board, Liviu Radu, who’s also the CEO of the company, Mariu Bodea, Bogdan Gaurean and Adrian Cighi, who represents Fondul Proprietatea.

The fund’s manager Franklin Templeton expressed its disappointment for this decision and said there is strong evidence to suggest that this shareholders meeting was held without fulfilling the legal requirements on meeting notice and quorum.

Templeton representatives said that this change comes after very encouraging results reported by the airport company in 2013. Its net profits increased by 35.5 percent to EUR 16.3 million and passenger traffic started to show signs of improvement following the introduction of new routes in the second half of 2013.

Over 7.64 million passengers passed last year through the two airports which the company manages, in Otopeni and Baneasa, which is 7 percent more than in 2012.

The fund manager also said that such a change can negatively impact the company’s financial performance and the Government’s credibility in its efforts to improve corporate governance in state owned companies.

Andrei Chirileasa, andrei@romania-insider.com