REC Silicon honours Lodbrok's request for additional board member

Norway-based polysilicon and silicon gas producer REC Silicon ASA (OSE:RECSI) announced today it plans to add a fifth seat to the company’s board of directors after taking into consideration investor feedback.

As reported last month, REC Silicon built a four-member board of directors that has two of its seats occupied by representatives of the company’s largest shareholder, namely Hanwha Group.

Having in mind that the Korean conglomerate is also currently discussing a contract for the vast majority of REC Silicon’s production, fellow investor Lodbrok Capital LLP waved the red flag before the recent extraordinary general meeting (EGM) with a request for an additional board member to be elected.

Today, the polysilicon producer recognised Lodbrok’s push for a change in this regard and said the following: “The board believes that with the important work facing the company going forward, it is in the interest of the company to supplement the board with one more director to complement the competence represented by the four current board members.”

REC Silicon noted, though, that the nomination committee had launched the search for a candidate even before Lodbrok’s initial shareholder letter. It expects to call for a new EGM in the near future and stressed that the nominee should be independent of the major shareholders.

“We do hope that this additional information gives our shareholders confidence in the board and nomination committee’s intention to comply with good standards of corporate governance, both in terms of the board composition and also in the case of related party transactions, consistent with our previous announcements,” the company concluded.

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