27 January 2021
Tolexis Trading Limited appealed SPFU order on ZTMC privatization
Tolexis Trading Limited (Cyprus), a member of Group DF, will appeal in court the State Property Fund of Ukraine Order No. 1971 on the privatization of the Zaporozhye Titanium and Magnesium Combine. The company’s lawyers filed a lawsuit demanding to recognize their preemptive right to acquire a share in the authorized capital of the company and to declare the SPFU order null and void.
The first court hearing in the lawsuit on the claim of ZTMC’s private investor, which owns 49% in ZTMC authorized capital, will be held on 1 February at Commercial Court of Kyiv City.
In the lawsuit, Tolexis Trading Limited stated that the order of the State Property Fund of Ukraine on the privatization of the state shareholding in the authorized capital of ZTMC LLC contained a number of violations of Ukrainian laws. In particular, according to the plaintiff, the SPFU Order directly violates Article 20 of the Law of Ukraine “On Companies with Limited and Additional Liability”, which states that “a company participant has the preferential right to acquire a share (part of a share) of another company participant, which is being sold to a third person”, as well as Article 16 of the Law of Ukraine “On Privatization of State and Communal Property”, which provides that “only if the participant of the company did not exercise within the specified period of time its preferential right to buy out a share, the privatization authorities shall sell privatization objects at an auction”.
According to him, the violation of the preferential right was not the only violation of the law that the SPFU committed by its decision to privatize ZTMC.
Follow this link to read more about SPFU Order that is appealed in court.