Possible Challenge
A political rift has deepened between Cepyme and CEOE as Cepyme sources allege that business groups are facing pressure to delegate voting power ahead of this year’s elections called by President Gerardo Cuerva. The pressures described are economic in nature and tied to union assets, reportedly used in the name of the CEOE with which various associations reach arrangements for their use.
Because of a wave of such notices, Cuerva moved to place the proposal before the board to change the internal rules to end unlimited voting delegation and curb coercion. Cepyme sources indicate the result of Tuesday’s board vote showed the problem clearly, a measure supported by 64 votes in favor, 55 against, and 3 blanks. Cepyme aimed to equate the power of delegations with that of the CEOE and ATA.
In the proposal, the six-delegation limit was set for decision-making bodies and the delegation of votes in electoral processes was eliminated. The measure must be ratified at the General Assembly, which Cuerva must call. For the change to take effect in the next elections, the assembly should be convened before March 16, the expiry of the current president’s term.
Ten days after the initial move, Cuerva summoned the board and the executive committee to draw attention to the pressure, though the power to approve a change rests with the board. The executive committee vote result was 11 in favor, 15 against, with three abstentions. Cepyme sources say the minutes stated that the committee vote would not affect the board’s decision, since the internal regulations can be amended without a favorable vote from the committee. Both votes were secret for the first time since ballots had been taken by hand.
Cepyme commissioned a legal report outlining the differences between CEOE and Cepyme statutes. The document also analyzes the process to call elections, confirming that Cepyme can schedule elections after the president’s term ends, a flexibility not provided to CEOE, which requires earlier scheduling.
Possible Challenge
Cepyme sources do not expect the organization to pursue judicial action over the matter. To avoid confusion, Cepyme’s legal advisor, hired during Antonio Garamendi’s presidency, attended the executive committee meeting to clarify that the vote would determine the content of the proposal but not whether it would reach this body. CEOE sources asserted that Cuerva breached the statutes by taking the matter to the board without the committee’s approval, a claim Cepyme denies.
Nevertheless, Cepyme recognizes that the board vote could be challenged, and in recent hours this possibility has gained traction. If such a challenge occurs, the issue would return to the board for a second vote. Cepyme officials say that if the rule change fails, elections will proceed without the proposed alterations.
Regarding timing, Cuerva’s term ends on March 16. The machinery will start once the current president calls a board meeting with the committee’s support to set a date. The board will then approve a date about 50 days after the call, with elections expected in May.