Court: Voting Agreement and Shareholder Agreement between Telenor, Storm and Kievstar are invalid

 

On May 25, 2006 the court of appeal confirmed the ruling of the Commercial Court of Kiev on invalidity of the actions of the Storm’s General Director who executed the Voting Agreement and the related Shareholder Agreement of Kievstar. Both agreements have been found invalid from the moment of signing.

 

Oleg Malis, Senior Vice President of Altimo, said: “The Voting Agreement between the shareholders of Kievstar dates back to the period when Altimo held 50% of Storm shares. Following the consolidation of Storm, Altimo performed a thorough legal and financial audit of the company’s activities and discovered gross violation of the corporate Articles of Association; the General Director did not have the permission of the shareholders’ meeting enabling him to sign the above Agreements. The management of Kievstar did not obtain the corresponding resolution of the Board of Directors either.”

 

The Voting Agreement was signed in violation of the principle corporate management regulations. Hence, one of the Storm shareholders has filed a suit with Commercial Court of Kiev to challenge the execution of the Agreement.

 

On April 25, 2006 the court sustained the claim and held that the Shareholder Agreement of Kievstar is invalid as well as the Voting Agreement. On May 25, 2006 the court of appeals confirmed the ruling of the court of first instance.

 

Kirill Babayev, Vice President of Altimo, said: “We welcome the ruling of the court of appeal and will continue our analysis of the reasons that led to signing of the agreement in violation of corporate procedures.”