The General Assembly of March 13th has finally approved the restructuring proposed by the government with some minor, but important, changes.
It is an important milestone in the history of our institutions as this time, the government subscribed to most of our observations and objections.
Indeed, we have long claimed that the by-laws of 2002 were unclear, unrepresentative (it gave too much weight to minor organizations) and it allowed for gridlock amongst organizations, thereby hampering the HRD’s functioning.
In order to reach this historic agreement, the BVGD did its share of compromise by accepting the principle of giving some weighted vote according to turnover. The reason being, that it is important to have everyone participating in such a structure. We noted that other trade bodies (e.g. the pharmaceutical industry) have a similar system in place. However we resisted giving control of Antwerp’s representative organization to a few large companies as they originally seeked. We also accepted to no longer have any seats on the Board in exchange of direct elections.
All along we insisted that the new structure had to be representative, transparent and democratic.
One cannot underestimate the enormous amount of work and sacrifices that have entered into this deal. All of the Directors of the BVGD were involved at some time or another in a crucial step along the way. All contributed to this success.
One also cannot underestimate the momentous decision that was taken by an almost complete unanimity (minus one trade union). It is clear proof to all skeptics that Antwerp diamantaires can work together if their opinions are heard and respected; and if one allows sufficient time to iron out the difficulties. We all have goodwill and are reasonable persons. We all come from the business world and we know when to make a compromise for a good deal. This was such a time; we all agreed on a deal that will benefit all parties.
New structure: Phase 1 of the government plan
The new Board will have twelve directors. Half of the directors will be elected directly by Antwerp diamond companies (2 seats for companies doing a turnover of more than 100 million euro, 2 for companies between 30 and 100 million, 2 for companies below 30 million); three directors will be nominated by the bourses; one by the industry; one by the trade union and one independent director, by the board itself.
What are the objectives that were reached?
- First, the board will have half of the seats going to the trade; this was a long-running demand, given the importance of trade in Antwerp.
- Those seats will be directly elected by the companies. Finally, the market has a direct stake in its representative body and will vote for the composition of the board.
- The articles in the by-laws that lead to gridlock have been eliminated.
- The general composition of the Board is more in proportion with the importance each sector represents.
What are some of the things that still need to be done?
- The directors for the bourses and industry should be directly elected by their members. One cannot satisfy oneself with the board of each bourse selecting the representative. The members should decide themselves who is their best representative for the umbrella organization. Only then will democratic principles be fully implemented.
- All registered Antwerp diamond companies should become members of the representative organization. It is odd and could lead to future friction that the companies who elect the directors of an organization are not themselves member of the organization.
- Name change: It is of paramount importance for the future vitality of Antwerp’s diamond sector to have the name Antwerp included in the name of the organization.
Many details have to be worked out of course and lengthy negotiations are due to take place, but is not impossible that most, if not all of the above become facts in the coming months. The government is ensuring that the future organization respects the principles of representativity, transparency and democracy.
Concerning the future organization of the structure itself (Phase 2):
After phase 1 has been completed and a new Board elected, the next phase will consist mainly of the separation of the commercial activities from the representative body. Indeed, from a legal as well as from a management viewpoint, it is inefficient and counterproductive to have all activities done by the same entity
Ownership will remain with the representative body. However, many other issues need to be addressed such as: What legal entity, if any, needs to be created? Which entities will enter the commercial enterprise? Which, if any, are to be merged? How will the directors of the commercial entities be chosen?
As you can see, the process is far from over, but given time and with constructive participation from all, we are convinced that an efficient and useful organization will come out to serve, in the best possible of ways, the interests of all Antwerp diamond traders.
André Gumuchdjian
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