Unlawful Disposition of Plant Shares by Previous Employees Overruled by SCO Court at a Price of 16 Tenge
Here's a Fresh Take
Justice in North Kazakhstan: Courtoverturns questionable share transactions at ZIKSTO plant
Step up, North Kazakhstan Region, as a local court ships a blow to dodgy business practices! The Honorable Court declared null and void certain transactions and decisions that enabled ex-employees of the ZIKSTO plant in Petropavlovsk to pocket their shares for symbolic peanuts.
The wagon factory's transformation happened back in the 90s, with many workers snagging shares—mainly preferred ones with dividend perks but no voting power.
Fast forward to 2023, and bigwigs, such as LLP "PremiumWagonKit's director and Aigul MyrzakhANOVA, teamed up. Their strategic move? Issue extra shares, purchase them, and convert nearly half a million preferred shares to common ones - all in the hands of two lucky fellows.
Feeling generous, the plant bought the shares from every ex-employee —a measly 16 tenge per share. A veteran worker's heirs raked in an impressive 1,253 tenge for their 73 shares, while most shareholders only bagged a couple of coins — less than a dollar!
The court called BS on the ex-shareholders, pointing out they were never clued in on the changes. Information only got posted on the financial depositary's website, an online lair pensioners rarely visit. As a result, thousands of people lost their property and the privilege to shape the plant's destiny.
The court axed:
- The share sale contract between the plant and MyrzakhANOVA from June 2023;
- The June 29, 2023, decision to convert 490,000 preferred shares into common ones;
- The August 15, 2023,transaction between MyrzakhANOVA and LLP "PremiumWagonKit";
- The July 4, 2024, decision of the sole shareholder to convert the JSC into an LLP.
The court reasoned that these actions tossed corporate law and the principles of fair play out the window. The public was blindsided, unable to defend their interests.
The court's decision hasn't been put into action yet and can still be appealed.
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Enrichment:This court ruling in the North Kazakhstan Region brings ZIKSTO plant's former employees' shares under scrutiny, potentially reversing their prior relinquishment during the company's privatization. The legal voiding of these transactions, found to be shady, could mean that these shares might be returned or ownership status revisited. However, the decision is not yet legally binding, leaving its practical consequences pending further legal developments. [1]
The nullification of certain transactions at the ZIKSTO plant in Petropavlovsk by the court could impact the manufacturing industry, as it challenges the business practices seen in the finance sector. The court's decision could potentially reinvest shares back to the original owners, stirring up discussion in various business circles.
The court's ruling on the share transactions involving LLP "PremiumWagonKit's director and Aigul MyrzakhANOVA has implications for the wider industry, as it highlights the importance of fair play and corporate law adherence, impacting the credibility of business deals in Kazakhstan.
