RKKW Client regains voting rights and maintains control over the company

It has been observed more and more frequently that the sanction of loss of voting rights from shares due to breach of disclosure obligations related to the ownership of a significant block of shares in a public company is used to gain control over the company by minority shareholders. RKKW Client, a majority shareholder in a public company, has also fallen victim to abuse of this legal regulation.

Our Client’s opponent, citing its violation of disclosure obligations, filed a motion with the court to prohibit the Client from exercising voting rights from the shares held and from exercising certain other corporate rights. The court granted the interim injunction, as a result of which RKKW Client was deprived of its voting rights.

However, due to the appeal filed by RKKW, the court, acting on a self-control basis, reversed the earlier order of the injunction and dismissed the motion in its entirety. Consequently, RKKW Client regained its corporate rights, in particular the right to vote on the shares. It is worth noting that the change of the ruling by the court under the self-control procedure is a very rare phenomenon.

The Client’s opponent filed an appeal against the court’s decision to dismiss the motion for interim relief, which was however validly dismissed. As a result, RKKW Client can freely exercise all corporate rights.

Prompt reaction to legal actions and diligent preparation of arguments are crucial for the effective protection of shareholder rights, which can be violated by security measures that are granted too hastily. Injunctions orders are issued without a detailed evidentiary hearing, even though their legal and factual consequences are often as severe as a final judgment in the case.

Legal support in this case was provided by Dariusz Kulgawczuk (Partner) and Piotr Frelak (Counsel), assisted by Karolina Kobojek (Associate), trainee solicitor. The team was led by Karol Maciej Szymański, Vice President of the Management Board of RKKW.