Society wants section of constitution opposed

 By Gideon Timothy
THE Teachers Savings and Loan Society board is urging the shareholders of Credit Corporation to oppose a proposed amendment to a section of that company’s constitution.
The society is the third largest shareholder at Credit Corporation with a 15 percent stake.
Society chairman Gabriel Tai said this was in relation to a proposal by the board of directors to amended the clause (of the Credit Corporation constitution) relating to  a director’s vacation of office when reaching the age of 70.
“We have all received the notice proposed by the directors of the company to amend the constitution, particularly the clause relating to director’s vacation of office when reaching the age limit of 70,” Tai said.
He said the TISA board was concerned with the proposed amendment, which in the board’s view did not reflect good corporate governance principles.
He said it  did not reflect the company’s intention to have in place a succession plan for the board to groom young Papua New Guineans to become directors.
“As shareholders and owners of the company, we expect the directors to uphold and practise good corporate governance principles and nothing less than that.”
Tai said this included directors being fit and healthy to carry out their fiducially duties.
“Aging does matter in a human’s judgment and health.
“The issue relating to the age limit of directors of the company serves a noble and prudent purpose. And as shareholders, we would like to see the need for the renewal of the board’s capacity and capabilities with new and fresh talent, building on the contributions by those who vacate for reasons of age.”
He said the clause on the age limit had been in the company’s constitution for years.
“I ask you: Why now and not earlier? What is it that persons beyond the age of 70 will bring to the company that will truly enhance benefits to shareholders, and which they have not done before? It makes no sense at all,” he said
“I hope you will see through the shallowness of the proposed amendments and do the right thing by voting against the amendments for the reasons I have tried to present.”