An unlawful court ruling prohibiting from redeeming equity securities (shares) issued by a joint stock company in accordance with articles 68 to 69 of the Law of Ukraine on Joint Stock Companies was set aside owing to the firm’s efforts

Project Partner: Diana Vasylevych

Project team: Anastasiia Pekar, Oleksandr Taran

Attorneys from Onopenko & Partners defended the Client and successfully contested the ruling that prohibited the company from redeeming its equity securities (shares) in accordance with Article 68 to 69 of the Law of Ukraine on Joint Stock Companies.

The attorneys proved in court that such an interim relief as a ban on redeeming securities was inconsistent with the matter in dispute (relief sought), which was to invalidate the resolutions passed by the issuing company’s executive bodies, and potentially infringed upon rights of the Client as a shareholder of the issuing company and, accordingly, was inadmissible in view of the requirements set out in Article 137 (10) of the Commercial Procedure Code of Ukraine.

Having succeeded in appealing against such ruling, the ban on redeeming the shares by the company was lifted and the Client’s rights and interests were restored.