Olainfarm shareholders elect new supervisory board at meeting held in a van

Shareholders of Latvia’s Olainfarm pharmaceutical company today elected a new supervisory board at a meeting that had been cancelled by the company’s previous supervisory board.

That's what economist Gundars Bērziņš, who was elected board chairman, told LETA.

The shareholders who participated at Monday’s meeting together hold more than 61 percent of Olainfarm shares, Bērziņš said.

Other members on the company’s new supervisory board include Jānis Buks, Kārlis Krastiņš, Andrejs Saveļjevs and Haralds Velmers.

The shareholders’ meeting was held on April 1 despite its cancellation by the previous Olainfarm board. The meeting, which took place inside a black van parked outside the Olainfarm entrance, brought together more than ten Olainfarm shareholders.

A number of police and security guards were monitoring the situation by the Olainfarm building.

Olainfarm representative Dana Hasana told LETA that the company had no reason to let people who are not Olainfarm employees into its territory because the shareholders’ meeting was cancelled.

The previous Olainfarm board includes Pāvels Rebenoks, Martins Krieķis, Daina Sirlaka and Irina Maligina, the eldest daughter of the pharmaceutical company’s late owner Valērijs Maligins who passed away in December 2017.

As reported, earlier the Olainfarm board said it cancelled an extraordinary shareholders’ meeting, called on April 1, as the request for the shareholders’ meeting had been signed by persons not on the list of the company’s official shareholders. The persons in question are Nika Saveļjeva, a daughter of Olainfarm’s late owner Valerijs Maligins, and Signe Baldere-Sildedze, the custodian of Maligins’ youngest daughter Anna Emīlija Maligina. The Olainfarm board therefore considers the request for the shareholders’ meeting legally invalid.

Meanwhile, Olainfarm’s largest shareholder Olmafarm, which belongs in equal parts to Maligins’ daughters – Irina Maligina, Anna Emīlija Maligina and Saveļjeva – has called on shareholders to turn out for the announced shareholders’ meeting on April 1, claiming that the company’s management board has yielded to unlawful pressure from the supervisory board and cancelled the meeting in sheer violation of legislative provisions.

Olainfarm supervisory board member Mārtiņš Krieķis said that the company calls on shareholders “not to fall for disinformation and not to participate in a campaign organized by raiders with an attempt to put one of Latvia’s largest companies in chaos”.

Due to the contradictory information in the mass media which might become an obstacle to transparent and fair trading, Nasdaq Riga decided to suspend trading in Olainfarm shares starting April 1, 2019.

Olainfarm makes medicines, food supplements, active pharmaceutical ingredients and chemical substances. Olainfarm shares are quoted on the Main List of the Nasdaq Riga stock exchange.

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