Joint stock company “Latvijas kuģniecība” (Latvian Shipping Company - LSC) has received a written confirmation from its shareholder JSC “Ventspils nafta” (VN) stating that representative of the VN has not received appropriate authorisation to bring actions against LSC Management Board and Supervisory Council Members. LSC would like to repeatedly emphasise that in any case it holds these claims unjustified. In the same time LSC is concerned about the partially legal attempts to invest serious amount of LSC financial resources in legal proceedings the expenses of which in case of dismissal would have to be fully covered by LSC itself.

 

LSC has already informed that pursuant to provisions of the Civil Procedure Law of the Republic of Latvia the VN authorised representative Mr. Lauris Liepa has not received appropriate authorisation to claim execution of such actions from LSC. We would like to emphasize that in case of bringing of an unjustified action LSC would have to repay all losses resulting from such case, starting with state duty of more than LVL 170 000. Due to the above mentioned arguments LSC cannot accept the claims filed by Mr. L. Liepa as feasible and justified.

 

LSC informed VN about this situation, and the response received from VN confirms that VN, indeed, has not granted Mr. L. Liepa an appropriate authorisation. According to explanations given by VN in its letter to LSC it has authorised Mr. L. Liepa only to submit claims about bringing an action by the company to LSC. This authorisation as stated by the VN letter does not give rights to Mr. L. Liepa to sign claims about bringing an action by the company. Mr. L. Liepa, whom LSC informed by about the inadequate authorisation, has not objected to the LSC arguments, thus obviously agreeing that he has been authorised to submit the documents, not sign them. Therefore LSC repeatedly states that claims signed by Mr. L. Liepa about bringing an action by the company against the LSC management Board and Supervisory Council members are unjustified and infeasible.

 

LSC is concerned by the fact that VN again evades to give a clear authorisation to its authorised person arising suspicion of possible dishonest intentions. LSC has drawn this conclusion on the fact that in case of dismissal of the action brought by the company LSC itself would have to cover all expenses and losses caused.

 

Additional information:

Ģirts Apsītis

Adviser of the Chairman of the Management Board

Latvian Shipping Company

Phone: +371 67020126