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Sunday, Mar 09, 2025

Controversy Erupts Over Delegated Voting Changes in Cepyme Leadership Elections

Controversy Erupts Over Delegated Voting Changes in Cepyme Leadership Elections

Gerardo Cuerva and Antonio Garamendi engage in a heated dispute over internal regulation amendments amid impending elections.
In a significant development within Cepyme, the employers' organization representing small and medium-sized enterprises in Spain, tensions have escalated between President Gerardo Cuerva and his critics, notably Antonio Garamendi.

This discord centers around a controversial alteration to the internal voting regulations, specifically the elimination of the delegated voting system ahead of forthcoming elections.

The decision to abolish the delegated vote was made by the Cepyme board of directors a few weeks ago, following a proposal from Cuerva, who is also confirmed as a candidate in the impending leadership contest.

This change has been met with strong opposition from approximately twenty members of Cepyme's executive committee, who argue that it contravenes prior resolutions rejecting the modification and label it as illegal.

This conflict of perspectives was prominently displayed during an executive committee meeting on Tuesday, where both sides presented arguments regarding the legality of the board's decision.

Cuerva defended the change with the support of María Emilia Casas, a former President of the Constitutional Court, who prepared an analysis affirming the lawfulness of the proposed amendments.

According to her report, as per the statutes and internal regulations of Cepyme, modifications to internal regulations fall under the jurisdiction of the board of directors, asserting that the executive committee lacks the authority to countermand such decisions.

Casas emphasized that the changes to eliminate delegated voting were necessary to align Cepyme's rules with constitutional and legal standards, as well as compliance with the regulations governing the deposit of statutes of business organizations.

Conversely, the opposition presented a report prepared by EY Abogados, which supports claims that the removal of delegated voting is indeed illegal.

The EY analysis asserts that internal rules confer exclusive and non-transferable powers to the governing bodies, and it characterizes the executive committee's role in proposing modifications as a substantive competence essential for properly facilitating the board's decision-making processes.

The report highlights key procedural failures that challenge the legitimacy of the board's decision, notably the absence of a prior proposal from the executive committee and inadequate communication to board representatives regarding the changes.

These deficiencies are described as irreparable flaws that could invalidate the agreement reached.

Looking ahead, a crucial meeting is set for March 11, where the board of directors is expected to determine a date for the elections, which will feature a contest between Cuerva and a rival candidate backed by Garamendi, the President of CEOE, the Confederation of Employers and Industries of Spain.
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