Magyar Telekom EGM appoints board members

The meeting, which was continued from another one convened on October 9, appointed three members to the board of directors, four to the supervisory board and five to the board of auditors.
Appointments to the board of directors included Thilo Kusch, Magyar Telekom's CFO; Mihály Galik, the director of Corvinus University's Marketing and Media Institute; and Frank Odzuck, CEO of Zwack Unicum Nyrt. The mandates run until May 31, 2007.
The appointments to the board of directors were necessary in part because of the resignations of Mihály Patai and György Surányi. Appointments to the supervisory board were necessary due to changes to Magyar Telekom's company charter, which now requires a majority of the board's members to be independent.
Shareholders with a combined 63.35% of voting rights were present at the meeting. Magyar Telekom said after the EGM on October 9 that it had still not closed an investigation into contracts signed at its unit in Montenegro and could therefore neither present an audited report from 2005 to shareholders nor pay a dividend, an announcement following an extraordinary shareholders meeting on Monday reveals. The contracts being investigated were worth a combined Ft 1.095 billion, but the investigation had cost the company Ft 3.1 billion, CEO Elek Straub said at the time. He added that he could not say when the investigation would be closed, but promised an announcement would be made as soon as the investigation produces enough information to satisfy the auditor.