The National Securities and Stock Market Commission has opened a case against the meeting organizers, IC Dragon Capital, for an attempt to organize a general meeting of Motor Sich shareholders, which did not comply with the law.
"Within its powers, the Commission carried out appropriate measures at the address and at the time specified in the notification regarding the so-called general meeting of the PJSC Motor Sich, but did not find any actions that would confirm the intention to hold them legally. As a result, an appropriate protocol of violations was drawn up," the NSSMC informed.
The Commission noted that the organizers of the meeting had been warned about the inconsistency of their actions with the norms of the Law "On Joint Stock Companies".
"The process of law enforcement concerning market participants has begun. The NSSMC opened a case for violation of the requirements of the Regulations on Depository Activities in relation to the depository institution DRAGON CAPITAL LLC," the message specifies.
The case was started for informational and organizational support of the illegal general meeting of the PJSC Motor Sich. The organizers of the meeting also violated the requirements of Art. 35 of the Law On Joint Stock Companies on the procedure for informing shareholders about the holding of a shareholders’ general meeting of the mentioned company.
At the same time, Dragon Capital noted that the company did not violate any laws, but acted solely to ensure that its participants were aware of the processes around Motor Sich.
The company also noted that it has already provided the regulator with clarifications regarding their actions.
Context. The DCH group of Oleksandr Yaroslavsky, together with the Chinese shareholders of Motor Sich, planned to hold an extraordinary shareholders’ meeting on January 31 this year to change the company's supervisory board. The initiators of the meeting claimed that they were supported by the owners of 80% of Motor Sich shares. On January 31, the SBU conducted investigative actions at the place of the declared meeting.
At the same time, Yaroslavsky announced the recruitment of management for Motor Sich.
Before that, President Volodymyr Zelensky put into effect the NSDC (The National Security and Defense Council of Ukraine) decision to impose sanctions against Chinese citizen Wang Jing and a number of Chinese companies, shareholders of Motor Sich.
The Motor Sich shares have been under arrest since April 2018 at the request of an SBU investigator in order to retain material evidence in a criminal case initiated in July 2017.
PJSC Motor Sich is one of the world's largest manufacturers of engines for aircraft, as well as industrial gas turbine units. It supplies products to more than 100 countries around the world. In January-June 2020, the company received 595.56 million UAH of net profit, while for the same period in 2019, the net loss was 428.58 million UAH. Motor Sich net income increased by 16.3%—up to 4 billion 728.9 million UAH.