A number of BOV shareholders are complaining of lack of equal treatment after chairman John Cassar White held a meeting exclusively with the Malta Association of Small Shareholders over controversial issues related to the bank.

The shareholders, who are not members of the association and want to remain anonymous, accused the chairman of violating listing rules in this regard and have called on Mr Cassar White to make public whatever he told the members of the association.

However, when contacted, Mr Cassar White dismissed the accusation and said that he had not broken any rules.

“Bank officials, including the chairman, meet the Association of Small Shareholders on a regular basis.

“Shareholders are also free to make direct inquiries to the bank. As long as the information they seek is not of a confidential nature, they will be given a reply. No price sensitive information is ever given in these meetings.”

No price sensitive information is given at these meetings

Shareholders who contacted the Times of Malta said the chairman was obliged to inform them what had been discussed in his meeting with the association.

“We don’t know what was discussed in the two-hour meeting held with the association. I am not a member of the association and don’t want to be a member. Still, as a shareholder, I have a right to know what they have been told,” one shareholder said.

“The bank is obliged to treat shareholders equally and the chairman cannot pick and choose to discuss bank matters with a selected few and not with all shareholders. There are laws and requirements which he needs to follow,” another shareholder insisted.

Contacted by this newspaper, a lawyer who is an expert in this field said that as a listed company, the bank was obliged to give shareholders not present at this meeting the same information he had made available to the association.

“Mr Cassar White is at liberty to meet whoever he deems fit. However, if he divulged information which is not in the public domain, then he needs to explain. If there are other shareholders which were not present at the meeting and who want to know what was said, then the bank should make that information available also to them,” the lawyer said.

Listing rules on the rights of shareholders are clear on this point. Article 5.22 states: “An issuer having equity shares authorised as admissible to listing shall ensure equality of treatment for all holders of such equity shares who are in the same position.”

In its reaction, the bank said that “the bank’s obligations of disclosure of confidential information is towards the regulators that today include the European Central Bank. The bank has never had any problem passing all the requested information to the regulators,” it said.

“The Annual General Meeting of the bank [normally held in December] also gives an opportunity to shareholders to ask the questions they want. Of course, the same principles of disclosure apply also in the AGM of the bank.”

The Times of Malta on Wednesday said that in a meeting he called with the Association of Small Shareholders earlier this month, Mr Cassar White discussed at length controversial issues, including the loan granted to Electrogas Malta Ltd and the early retirement package granted to Parliamentary Secretary Michael Falzon. The bank did not issue any statement on this meeting.

The association said: “The meeting lasted well over two hours because the chairman’s replies were exhaustive albeit within the limits of banking secrecy.

“All the association’s questions were answered and the chairman also dwelt on challenges that the bank is tackling such as the new IT system, which requires substantial investment and higher regulatory costs.”