Hungary: Court Rejects OMV Lawsuit
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Monday, 19 May 2008 |
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A potential takeover by
Austrian oil firm OMV of Hungarian rival MOL MOLB.BU that
could be worth $20 billion received a fresh setback last week
when a court in Hungary threw out a lawsuit it had brought.
OMV which owns 20 percent of MOL, had sought to
dismantle statutes which limit voting rights for holders of MOL
stock.
The court said that the voting cap and rights associated
with a voting preference share held by the government had been
part of MOL's statutes for years and that the court only had the
authority to rule on fresh changes to the statutes.
A rule which limits how many board members may be dismissed
at one time was in line with the civil code, the court said,
adding that it had no authority to consider whether it was in
line with the Companies Act.
It said that if a shareholder suspected the rule was not in
accordance with the act, they should have challenged it after
the rule was passed, but no challenge was made.
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