Eliahu sues to force Leumi assembly

Bank Leumi's largest private shareholder, Shlomo Eliahu, turned to the High Court of Justice yesterday, asking it to force the bank to reinstate a shareholders assembly. The assembly, originally called for March 11, was canceled by the bank's board in keeping with a legal opinion it had requested.

The High Court will address Eliahu's motion on March 1.

Eliahu wants the assembly to be held as scheduled, and to address the original subject planned for discussion the candidacy of former Bank of Israel governor David Klein as Leumi's next chairman.

He also wants the court to declare that the board did not have the authority to cancel the assembly, and that this move was illegal.

Eliahu said he asked for the assembly to be called, in keeping with corporate law, solely to conduct a vote on Klein's candidacy. The bank organized the assembly 20 days after he placed his request, and decided to add several items to the agenda - such as votes on the bank supervisory committee's preferred candidates, including current CEO Galia Maor. Because the assembly was called in keeping with Eliahu's request, and within the time frame stipulated by law, it cannot be postponed, he said.

"If the assembly is not held on the original date, as the directors originally planned, this would be an unacceptable infringement of the express legal rights of those calling for the meeting within a specific time frame, which was predetermined by lawmakers," Eliahu argued in the suit. "Therefore, the respondents cannot cancel this assembly or change its date."

He rejected Leumi's claim that it canceled the meeting due to a demand by the Israel Securities Authority, as the latter never even suggested the bank should do such a thing, he said.