President of Colina Insurance Company James Campbell is seeking to hold on to his position even though there has been a major breakdown in relations with Chairman Emmanuel Alexiou, The Bahama Journal has learnt.
Meanwhile, a local regulator confirmed on Sunday that the matter is being investigated to determine what the likely impact of the fallout could be on shareholders and policymakers.
The majority shareholders have let it be known that they have a major difficulty with Mr. Campbellﾴs operational style and in a matter of weeks there is to be a management change even though a statement was released by Colina over the weekend denying that any changes were taking place.
ﾓThe management of Colina Insurance Company Limited wishes to advise the general public, policyholders and shareholders that contrary to recent published articles, there has been no change in the current leadership and management of the company,ﾒ the brief statement said.
The company promised that a further statement will be issued next week.
Local regulators met over the weekend to discuss the Colina matter and the apparent management breakdown.
Hilary Deveaux, who heads the Securities Commission of The Bahamas, told The Bahama Journal on Sunday that regulators are investigating reports of possible managerial changes at Colina.
But he stressed that regulators do not get involved in the internal affairs of any company.
When the government recently approved Colinaﾴs acquisition of Imperial Life Assurance company, it attached 21 conditions to which Colina is required to adhere.
ﾓWe have to see if there were any violation of those things,ﾒ Mr. Deveaux said.
As part of the conditions, Colina has consented to ongoing consolidated supervision by regulators and to abide by a set of corporate governance standards to be developed by the regulators with the Securities Commission as the lead regulator.
As well, Colina agreed to the appointment of a majority of independent, non-executive directors to the boards of Colina Holdings Bahamas, Colina Financial Advisors and Colina Insurance Company.
The group also agreed to appoint audit committees, the majority of the members being independent, non-executive directors, to which the internal auditors are to report.
Mr. Deveaux said local regulators would also have to consider whether there are any relevant laws that are being violated.
Mr. Deveaux pointed out that the Securities Commission is responsible for protecting the interests of shareholders, while the Registrar General is mandated to ensure the protection of policyholders.
ﾓWe would do everything in our means to make sure our mandate is carried out,ﾒ he said.
The Securities Industry Act mandates that any material change affecting a public company have to be disclosed to regulators, he noted.
Meanwhile, employees of the Colina group of companies are starting another week in the dark, as confusion mounts over the breakdown in relations.
Anthony Ferguson, one of the principals of the group, has sided with Mr. Alexiou on the matter.
Many insurance industry players, meanwhile, continue to watch developments. They had argued that Colinaﾴs acquisition of Imperial would have been unhealthy for the industry.
Candia Dames, The Bahama Journal
