MOSCOW, April 18 - RAPSI. The Moscow District Federal Commercial Court has upheld the lower-court judgment supporting the financial markets authority's decision to fine Ingosstrakh for failing to provide engagement letters to its minority shareholders.
The Federal Service for Financial Markets fined the insurer upon the request of Vega, New Capital and Investment Initiative, which are controlled by PPF Investments, a company holding a 38-percent stake in Ingosstrakh.
Under the joint stock companies law, the minority shareholders sought copies of the engagement letters with the lawyers representing the insurer in courts.
PPF Investments commented on the judgment in a conversation with the Russian Legal Information Agency (RAPSI/rapsinews.ru).
"The Ingosstrakh management leaves us no other possibility than to enforce under court procedure our legitimate right to read the engagement letters entered into on the insurers behalf," the company said, adding that "the fine could have been avoided if the management team had done everything in compliance with the law."
RAPSI has yet to reach Ingosstrakh for comment.
Ingosstrakh is a leading insurance company operating on the international and domestic markets since 1947. It runs 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.