Institutional investors, whose presence confers stability thanks to their long investment horizon, must be given adequate representation in the bodies charged with supervisory functions. Sound and prudent management demands that the presence of current and former employees in the shareholding structure should not influence management policies and decisions. Second, there should be no hesitation to change the bank’s legal form.
International authorities and investors concur that the limited share company is the model most consistent with the characteristics of large banks, encouraging contributions of capital and fostering transparency of ownership structures and governance. The larger cooperative banks must open up to this transformation, easing the way by setting realistically achievable quorums for their general meetings.