The constitutional Court refused to open a case on representation of 47 people’s deputies on the constitutionality of provisions of the laws regulating the procedure of the mandatory sale of shares at the request of the owner more than 95% of shares (squeeze-out).
Head of the National Commission on securities and stock market of Ukraine (NSSMC) Timur Limp was announced on his page in the network Facebook.
“It removes the question regarding the constitutionality of squeeze-out,” said Limp.
The head of the regulator said that the securities Commission questions remain to valuation of shares within the squeeze-out.
“24 of the evaluation report had very significant flaws that affected the reliability of the assessment, or do not meet the requirements of legal acts on valuation of property, were substandard or unprofessional. Yet, approximately 40 reports were partial issues,” added Limp.
According to the text of the court ruling of 10 October, the Grand chamber of the COP explained its decision lack of jurisdiction raised in the constitutional petition questions and the discrepancy of the constitutional representation to the requirements of the law.
The constitutional Court noted that the deputies did not specify what rules must be checked for constitutionality; mostly listed are not evidence of unconstitutionality of the contested norms, and assumptions; and the provision on the compulsory redemption was only two years until June 3, 2019, that is, until the date of dispatch in the CC of the constitutional petition.
The constitutional court stressed that since a separate provision of the law has exhausted its action, they cannot be considered for compliance with the Constitution of Ukraine.
According to NSSMC, as of October 21 took place in Ukraine 301 the procedure of squeeze-out, i.e. the mandatory sale of shares upon request of the person or group of persons who jointly own dominiruyushim a controlling stake of 95%. In the framework of the squeeze-out on account of conditional storage (escrow) open to minority shareholders, were transferred to UAH 1.2 billion.
Procedure squeeze-out was secured by the Verkhovna Rada on March 23, 2017 in the law “On amendments to some legislative acts of Ukraine on improving the level of corporate governance in joint-stock companies” (No. 1983-VIII, article 65-2). This document also provides for a sell-out – compulsory acquisition of shares by the majority shareholder on the demand of a minority.