JSC Latvian Shipping Company (LK) entirely rejects the claims publicly made by JSC Ventspils nafta (VN) regarding the alleged failure on the part of LK to call a shareholder meeting at the request of VN as a shareholder. 

Following the request of VN and in accordance with Article 270 of the Commercial Law, the Council of LK has called an extraordinary shareholder meeting. Thus the opinion expressed by VN regarding infringement of shareholders' rights has no grounds. 

LK informs that other shareholders of LK hold such a request of VN being unlawful, taking into account that items of agenda requested by VN, namely amendments of statutes to reduce the number of the Council members and elections of such a Council reduced in numbers, are illegitimate. These aspects have been highlighted in the letter No 15.4-04/643 of March 1, 2010 by the Ministry of Welfare and in the letter No 1.17/2517 of March 5, 2010 by the Privatisation Agency, stating that the reduction of the number of LK Council members proposed by VN does not comply with the statutes of LK and rules on privatisation still in force. 

On March 24, 2010, in turn, LK received a letter from shareholder Imants Liepiņš to say that on March 22, 2010, at the shareholder’s request, the Rīga Regional Court launched a civil case.  The shareholder asked the court to declare as illegal and to nullify the VN demand for a shareholder meeting, to prohibit the proclamation, convening or holding of a shareholder meeting with an unlawful agenda, and to collect relevant losses for damages.

On March 12, 2010, in response to the VN demand, the Company Register of Latvia rejected the demand that an emergency shareholder meeting be held at LK.  This ruling has taken force.

Thus, in contrast to what VN claimed in its announcement, the Company Register, too, has recognised the fact that the LK Council has convened an emergency meeting of LK shareholders in accordance with the law on commerce.

For more information:

Marita Ozoliņa-Tumanovska

Manager of PR & Advertising Department

Telephone +371-67020120, 29287169

marita.ozolina@lscgroup.lv