CONFIDENCE Law Office partners – attorney Dr Paulius Miliauskas and attorney Dr Laurynas Didžiulis – provided legal comments to news portal “Verslo žinios“ regarding the protection of minority shareholders of AB “Žemaitijos pienas” when the company announced that it is planning to delist from NASDAQ Vilnius Stock Exchange at the end of August, 2016.
CONFIDENCE lawyers pointed out that decision to remove shares from trading on a regulated market may only be taken by at least 75 % of votes carried by shareholders participating at the general meeting of shareholders. This means that minority shareholders should carry more than 25 % of votes at a particular meeting in order to effectively protect their rights and interests.
Lithuanian Securities Act protects investors by establishing fair price principle which prohibits unfair reduction of the share price. Principles of equity and fairness are particularly important in cases where reasonable expectations of investors, such as distribution of dividends, are undermined by company’s actions to delist its shares from regulated market and pay unfair price to investors.
Protection of investor rights and interests is fundamental to efficient financial markets, thus it is very important for investors to know their rights and understand what actions they can take to protect their financial interests. CONFIDENCE Law Office specializes in regulatory framework of financial markets and offers full support package to investors, including counselling investors before investments are made and protection of investors’ rights in case of disputes.
More information about delisting AB “Žemaitijos pienas” shares and detailed CONFIDENCE comments in Lithuanian can be found here.