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MEETING WITH SHAREHOLDERS TOOK PLACE AT STATE COMMITTEE ON SECURITIES

Business Materials 21 June 2005 18:25 (UTC +04:00)

On 21 June, the State Committee on Securities (SCS) held a meeting with shareholders. The head of the committee, Heydar Babayev noted, that the legal basis, regulating their activities, both from the part of the international financial institutions, and in his own opinion, has been recognized as perfect. According to Babayev, there are, however, some problems in the work of shareholders, and various complaints come to the SCS. "The range of these complaints is extremely broad. The owners complain against limitation of their rights due to not holding of meetings, sale of equipment and other property of enterprises without their knowledge. Twice we averted the attempts to sale the land plot, on which the enterprise is located, from the part of the management", Babayev noted. .

Head of the SCS legal department, Riyad Gasimov noted, that 20 standard documents, regulating the functioning issues of joint stock companies had been adopted during the previous year. He stressed, that the number of offences in this field lowered by 11%. For 5 months of 2005, 114 applications on violation of investors' rights came to the SCS (for the last year there were 239 of such applications). The number of joint stock companies, which have been complained against, is 357 (546). In January-May 2005, the punitive measures have been applied in 35 cases, and their total amount is 40,15 million manats (in 2004 вЂ" 104, with the total amount of 121 million manats). The claims have been produced in 26 cases (56). Totally, researches have been carried out at 248 JSC (580million manats).

The owners complained against the blackmail from the part of some small shareholders, purchasing small shares with the aim of their re-sale to larger owners. In case of refusal to buy a share, they blackmailed by the threats to apply to the SCS with various complaints. Babayev noted, that the SCS knows such facts and even the names of people, engaged in such blackmails, But the SCS is obliged to accept and consider complaints of all shareholders. He also assured all the entrepreneurs, that there would be no claims to them, in case they operate strictly within the law.

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