After Guy Verhofstadt, Prime Minister of Belgium, declared the Diamond High Council (HRD)’s current structure illegal, negotiators have reportedly reached an agreement that will make it legally compliant as well as get rid of some of the divisions between large and small companies.
Under the new proposal, there will be twelve board members, but all will be elected by a direct vote.
The group Handel will have six seats, but there will be seats set aside for large companies (average yearly turnover in the last three years of above $100 million); medium-sized companies (between $30 and $100 million); and small companies (below $30 million.)
The industry, bourses, banks and unions will each get a seat. There will be one “independent” seat “attributed to one external first class business person, which should require the approval of the whole other members of the board of directors.”
“Phase Two” of the HRD’s evolution would split the group in two. HRD Public would be the new umbrella organization, a non-profit entity that handles all the HRD’s non-profit functions, like the diamond office.
HRD Newco will be a private company managed by board members that includes the certificates department as well as other for-profit functions.
Last month, managing director Peter Meeus resigned from the HRD, followed by board member Dilip Mehta of Rosy Blue, who complained that there was no longer room for large companies on the HRD board.