The Khanty-Mansi court's ruling denied the investors the right to resell Surgutneftegaz treasury shares, carried on its subsidiaries' balance sheets. The plaintiffs claim that Surgutneftegaz's executives, who officially owe less 0.5% of the companies' stock, violate minority shareholders' legitimate right to take part in the management process, controlling at least 62% of Surgutneftegaz's treasury shares.
Under Russian laws, treasury shares shall be retired or resold within one year of their purchase, the plaintiffs say in their claim. Hopefully, the Arbitration Court of Tyumen will put an end to the Surgutneftegaz top management's practice of sidelining minority shareholders, Hermitage Capital Management's Chief Executive Officer, William Browder, pointed out.
According to Mr. Browder, minority shareholders are entitled to appoint and dismiss executives, participate in the decision making on profit distribution, and to get dividends, but Surgutneftegaz infringes upon shareholders' rights by misusing its treasury stock.
The shareholders will continue to pressure the Surgutneftegaz management into giving up the practice, warned the Hermitage Capital Management CEO. They contemplate filing more claims against the corporation, he added.
Surgutneftegaz has made no response to the minority shareholders' claim thus far.
