Ingosstrakh's fine for denying shareholders documents upheld
MOSCOW, May 23 - RAPSI. The Supreme Commercial Court has upheld the Federal Service for Financial Markets' decision to fine the Ingosstrakh insurance company $16,000 for failing to provide a copy of the general director's employment contract to minority shareholders, the court told the Russian Legal Information agency (RAPSI/rapsinews.com).
The court has also dismissed the insurer's motion to reconsider the rulings in the case.
The watchdog fined Ingosstrakh upon the request of Vega, New Capital and Investment Initiative controlled by PPF Investments. PPF Investments holds a 38-percent stake in Ingosstrakh.
The minority shareholders sought copies of the engagement letters with the lawyers representing the insurer in court in full conformity with the joint stock companies law.
PPFI spokesman Jan Piscacek said that the decision by the "supreme judicial authority is a landmark in Russian judicial practice as it actually confirmed that the availability of personal data in a document does not provide grounds for refusing to provide the document as per the joint stock companies law."
Ingosstrakh is a leading insurance company operating on the international and domestic markets since 1947. It has offices in 220 Russian cities and towns, as well as subsidiaries and representative offices abroad.
PPF Investments is a Jersey-based international group engaged in private capital management.