Holding, operating companies formed
for new TelEm, Smitcoms structure
PHILIPSBURG--The new corporate structure of the TelEm Group of Companies and international carrier Smitcoms became reality Monday, when the holding and operating companies were legally instituted by Notary Michael Alexander.
The holding company will hold the assets of the merged companies and supervise the operating company. The latter will be in charge of the daily operations.
The shares of Smitcoms and TelEm and its subsidiaries TelNet and TelCell were also transferred from the Island Government to the holding company, which is called St. Maarten Telecommunications Holding Company. The operating company is St. Maarten Telecommunication Operating Company.
The new structure will have one supervisory board of directors and the Island Territory will remain sole shareholder of the integrated company.
Chairman of the Supervisory Board of Directors Joseph Richardson has been appointed interim Chief Executive Officer (CEO) of the integrated company.
Vice Chairman of the Supervisory Board Rudy Hoeve will serve as acting Chairman until Richardson’s interim post with the company expires.
Representatives of the TelEm Group, Smitcoms and the board were also scheduled to discuss re-designating the heads of Smitcoms and the TelEm group to different positions within the company yesterday. Richardson said the Executive Council had already made a decision that the Managing Directors of TelEm and Smitcoms would assume different posts in the company.
Richardson said his primary task was to appoint a new CEO for the merged company. “We have to find a new CEO for the company and that is why the decision was taken to make me interim (CEO) until a CEO is appointed,” he told reporters. “Basically my task is to start getting the companies working together.”
Richardson said he had been appointed CEO to give the heads of Smitcoms and TelEm a chance to apply for the CEO post. Advertisements will be placed in the newspapers next week inviting applicants for the position of CEO and other posts that will become vacant under the new structure.
The Island Council approved the new corporate structure for the TelEm Group and Smitcoms during a debate on June 5.
Richardson told The Daily Herald after yesterday’s meeting that the present management team would meet today to discuss how the physical merger of the companies would proceed. The status of employees will also be tabled during today’s meeting. “We did the paperwork, but the physical work will start tomorrow (today),” said Richardson.
Telecommunications Commissioner Franklin Meyers had prepared a position paper recommending that all employees within the TelEm group be retained and other measures taken to ensure the viability of the company. He had said earlier this year that the report focused on the “social aspects” of the company rather than on the “financial bottom line.”
Also present at yesterday’s session were Smitcoms Managing Director Curtis Haynes, TelEm Interim President Director Edward Benjamin, Rudy Hoeve, TelEm Financial Director Helma Etnel and board members Wanuki Hodge, Paul Marshal, Steven Constance and Kelvin Bloyden.
The steering committee charged with the restructuring of the company is expected to be dissolved soon.
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