Hidroelectrica Chairman Silviu Avram Suspended — NRG-IA

Shareholders' Massive Vote Suspends Chairman Silviu Avram — What Happened Hidroelectrica's shareholders approved, with an overwhelming majority of 94.92% of the votes cast by those present, the suspension of Silviu Răzvan Avram from his position as Chairman of the Supervisory Board. The decision was made during the General Shareholders' Meeting (AGA), following an explicit proposal from the Ministry of Energy, which holds the majority stake in Romania's most profitable electricity producer. The administrative measure freezes Avram's leadership activity until his legal status is definitively clarified. According to reports published by G4Media and Economedia, the resolution was formalized by approving Addendum No. 5 to his mandate contract. The shareholders' decision comes as a direct reaction to the criminal integrity issues faced by the suspended chairman, who has been indicted by the National Anticorruption Directorate (DNA). The Ministry of Energy acted based on contractual clauses regarding the inability to perform duties compliant with corporate standards. The suspension from office serves as a protective measure for the corporate reputation of the Bucharest Stock Exchange (BVB) listed company and does not equate to a ruling on criminal guilt, respecting the presumption of innocence until a final court decision is reached. The Bribe-Taking Complicity Case and Political Connections The direct cause of this decision is Silviu Răzvan Avram's status as a defendant in a corruption case prosecuted by the DNA, which has been in court since 2024. Anticorruption prosecutors accuse him of complicity in bribe-taking in the case of Ioana Timofte, the former head of the National Company for Control of Boilers, Lifting Equipment, and Pressure Vessels (CNCIR). In this case, Avram is suspected of benefiting from luxury vacations illegally funded by commercial partners of the public institution. Beyond the criminal implications, the case highlights political ties at the top of state-owned energy enterprises. Silviu Răzvan Avram is the son of the godfather of PSD leader Sorin Grindeanu. According to asset disclosures analyzed by the press over recent years, financial relations between them include a €20,000 loan granted by Grindeanu to Avram in 2016, as well as a substantial loan of 445,000 RON granted by Avram to PSD in 2020 to finance the parliamentary election campaign. The delay in executing this suspension, despite the indictment occurring earlier, has drawn severe criticism regarding compliance with corporate governance principles (Emergency Ordinance 109/2011). The formal proposal for suspension was initially formulated by Ilie Bolojan during his interim tenure as Minister of Energy, demanding an urgent correction of Avram's contractual status. Recruitment Procedure Bottlenecks and Corporate Governance Risks The direct consequence of this management crisis impacts the critical selection process for Hidroelectrica's new executive directors. The company is currently in the middle of a recruitment drive for the key roles of Chief Executive Officer (CEO) and Chief Financial Officer (CFO), a process of strategic importance for the company's operational stability and market valuation. According to internal regulations, this selection process was supposed to be directly coordinated and supervised by the Supervisory Board, which was chaired by Silviu Răzvan Avram until Friday. Although the recruitment firm Pluri Consultants has already been selected to manage the process, the suspension of the Board's chairman introduces a major factor of uncertainty and risks undermining the credibility of the selection in front of institutional investors. For the capital market and minority shareholders (including large private pension funds), instability within the Supervisory Board is a red flag. Hidroelectrica provides nearly a third of Romania's national electricity generation, and any disruption in its strategic leadership can influence long-term investment decisions in new production capacities. The 90-Day Deadline and Immediate Revocation Mechanism The short-term outlook is defined by strict legal deadlines introduced through the new addendum. The Ministry of Energy has set a clear timeline: if a final court ruling is not issued within 90 days from the AGA's approval of the suspension, the ministry will request Avram's complete revocation from the Supervisory Board, citing permanent inability to fulfill the mandate. Furthermore, authorities have provided a safety mechanism to prevent bureaucratic gridlock. Should Silviu Răzvan Avram refuse to sign the addendum approved by the shareholders, contractual provisions allow for his immediate revocation by the AGA for culpable and unjustified failure to perform mandate obligations. In the coming period, Hidroelectrica's Supervisory Board will have to appoint an interim chairman to take over the leadership of meetings and ensure the completion of executive recruitment procedures, under…