We are glad to inform you that the corporate dispute of minority shareholders (represented by lawyers of our Law Firm) with a metallurgical industry tycoon was successfully completed.
The dispute included around 100 trials, including proceedings concerning a registration in the book of shares and we won all the trials. We proved before the court that the provisions of the company’s articles of association concerning the company’s consent to the disposal of registered shares are ineffective.
We demonstrated that limitations to the disposal of registered shares, as stipulated in the articles of association, are only effective if the company indicates a potential buyer to a shareholder interested in disposing of shares and, at the same time, the articles of association provide for:
- a deadline for the appointment of such a buyer of shares;
- a price at which the shares can be disposed of (or a pricing method);
- a deadline by which the payment for the shares must be made.
As the articles of association do not provide for any of the above regulations which would define limitations to the disposal of shares in detail, the provisions of the company’s articles of association concerning limitations to the disposal of shares are deemed to be ineffective. In consequence, each of potentially interested shareholders may freely dispose of their shares without the company’s prior consent.