Press releases

Major related party transactions finally to be disclosed to Ingosstrakh’s minority shareholders

10/25/2011 | Moscow | Back

On Monday, Moscow’s Ninth Arbitration Court of Appeals fully satisfied the claim raised by the entities controlled by PPF Investments against OSAO Ingosstrakh. The insurance company was ordered to disclose its related party agreements to its minority shareholders holding together a large interest (38.5%) in the company’s stock. These agreements were concluded by the company in the period from the second quarter of 2009 to 4 March 2011 with entities controlled by the Bazovy Element Group, including OAO Glavmosstroi, OAO GAZ, AKB SOYUZ and others. The decision of the second instance court has already become final.

We note that the minority shareholders have attempted several times to draw regulators’ attention to the fact that transactions with related parties were frequently adopted at the meetings of Ingosstrakh’s Board of Directors and annual meetings of the company’s shareholders without indicating the specific amounts or even the subject matter of each transaction.

“We certainly welcome the decision of the court because the insurer’s management has for several years unjustifiably denied the PPFI Group companies their legal right to know the contents of the major agreements entered into by the company we own”, said PPFI spokesperson Jan Piskáček. “PPFI sincerely hopes that this decision will be a clear signal for the management team headed by A.V. Grigoriev to acknowledge that they must review their established illegal practice of ignoring the requirements of their shareholders”.

PPF Investments’ press spokesman, Jan Piskáček
jan.piskacek@ppfinvestments.com