Under pressure, Orpea recommends a board reorganization

Sunday, the French corporation Orpea, which is under criticism for its business practices and the way it manages its residences, unveiled intentions to reform its board of directors in an attempt to boost corporate governance.

Orpea claimed that during its annual general meeting, shareholders will be invited to select five new independent directors for a four-year term. One of the four is Guillaume Pepy, the current chairman of Initiative France and a former chairman and CEO of the state-owned train business SNCF.

Orpea stated last month that an audit discovered indications of financial misconduct, but did not substantiate all of the company's charges. Last month, authorities also searched the offices of Orpea. Orpea shares are down about 70% so far in 2022.