The Public JSC “Latvijas kuģniecība” (LSC) Group’s company “Latmar Holdings Corporation”, which also owns almost 700 000 shares of the LSC shareholder JSC “Ventspils nafta” (VN), draws attention of all VN investors, Financial and Capital Market Commission and stock exchange NASDAQ OMX Riga to the fact that VN Management Board grossly breaches requirements provided by the Commercial Law of the Republic of Latvia, Financial Instrument Market Law and laws and regulations of the stock exchange regarding the shareholders’ rights to get acquainted with draft decisions to be reviewed in shareholders meeting. “Latmar” is of the opinion that these violations once again prove incompetence and unprofessionalism of the VN Management Board and is an obvious justification of the necessity to recall the present VN Management Board.

 

Announcement published by the VN Management Board on 28 April 2010 about convocation of the regular shareholders meeting on 11 November 2010 states that as from 28 October 2010 14:00 the draft decisions of the VN shareholders meeting will be available on the VN Internet homepage. At the mentioned time visiting the said home page “Latmar” stated that it does not contain several draft decisions of items that are included in the agenda: neither the VN draft financial statements for 2009 that must be drawn up in compliance with both the Latvian, and International Accounting Standards, nor the international audit company’s “Ernst&Young” sworn auditors’ report on these statements, nor draft decisions on recall of VN Supervisory Council members and election of new VN Supervisory Council members. Thus by failure to ensure publishing of the said information VN Management Board grossly breaches the rights of shareholders to receive information in due time about issues to be reviewed in the shareholders meeting and violates requirements of several laws and regulations.

 

“Latmar” is of the opinion that VN Management Board, which stands out for its incompetence, in its present composition is not able to run operational activities of VN at all because majority of its members – Simon Boddy, Boris Bednov and Alexander Yagdzhiyants – do not reside in Latvia on a regular basis and two of them may have even never visited Latvia or VN. This way VN is neither adequately run, nor managed, causing losses to all VN shareholders. 

 

“Latmar” already has asked to express distrust to the VN Management Board, finding its operation as unprofessional and unethical, and has requested to include this issue in agenda of the regular VN shareholders meeting on 11 November 2010. “Latmar” has also requested to include in agenda of the VN shareholders meeting the issue on recalling of the VN Supervisory Council, holding it jointly responsible for the malicious activities of the VN Management Board.

 

Additional information:

Ģirts Apsītis

Adviser of the Chairman of the Management Board

Latvian Shipping Company

Phone: +371 67020126