Pepeliaev Group’s St Petersburg Office has helped its client to win a complicated corporate dispute
Our lawyers from St Petersburg corporate practice have successfully defended interests of a public enterprise, a large regional producer of bread and pastries, in a dispute with its former shareholders who sought to challenge a resolution of the enterprise’s supervisory board regarding how the redemption price of shares had been established.
Background:
The claims of the shareholders who were former employees (the claimants) were that, in their opinion, the balance sheet value of the assets which is used to determine the redemption price of shares was greatly understated in contrast with the market value.
Pepeliaev Group’s lawyers have devised a consolidated position according to which a redemption price of shares of a public enterprise should not be determined based on the market value of its assets. They also represented the client in court.
Why this case is important:
Our arguments convinced the judges that it was correct to apply a consistent approach to the rules of how shares are assessed during redemption. Consequently, we have managed to avoid an expensive expert examination to be conducted each time when employees leave the company. Our team has won the case in courts of all three levels, with the claims of former shareholders being dismissed in full.
Moreover, we have managed to prevent a precedent from being established which could have rather dire consequences for the company: both from the financial perspective (up to a bankruptcy and liquidation of the enterprise had numerous claims of its former employees been upheld) and from the perspective of engaging the enterprise’s internal resources.
Partner and Head of the St Petersburg Office Sergey Spasennov and Associate Roman Sokolov represented the client’s interests in court.
Background:
The claims of the shareholders who were former employees (the claimants) were that, in their opinion, the balance sheet value of the assets which is used to determine the redemption price of shares was greatly understated in contrast with the market value.
Pepeliaev Group’s lawyers have devised a consolidated position according to which a redemption price of shares of a public enterprise should not be determined based on the market value of its assets. They also represented the client in court.
Why this case is important:
Our arguments convinced the judges that it was correct to apply a consistent approach to the rules of how shares are assessed during redemption. Consequently, we have managed to avoid an expensive expert examination to be conducted each time when employees leave the company. Our team has won the case in courts of all three levels, with the claims of former shareholders being dismissed in full.
Moreover, we have managed to prevent a precedent from being established which could have rather dire consequences for the company: both from the financial perspective (up to a bankruptcy and liquidation of the enterprise had numerous claims of its former employees been upheld) and from the perspective of engaging the enterprise’s internal resources.
Partner and Head of the St Petersburg Office Sergey Spasennov and Associate Roman Sokolov represented the client’s interests in court.