Thursday, January 8, 2015

Court to hear Ajwa lawsuit Dec 8

The Economic Court will look into the lawsuit filed by shareholders of Ajwa Group for Food Industries to get compensation for the period of halting the stock on the Egyptian bourse.
Khalid Al-Gharabawi, a lawyer and shareholder at Ajwa, said this case was filed by some shareholders after a ruling was issued against former Managing Director Mahmoud El Sayed Abdel Fattah who was ordered to pay damages for the period of halting the stock.
The stock resumed trading in mid-October 2014 after being stopped for more than three years.
Al-Gharabawi told Mubasher in a phone call that shareholders also plan to take more legal actions against Ajwa, demanding compensations for the huge losses they incurred from the stock halt.

Other groups of shareholders of different companies, such as Abraj Capital, Al Borg Lab, El Mokhtabar, and Orascom are also discussing filing the same law suits against the management of their comapnies for delisting their stocks from the Egyptian Stock Market which affected minority shareholders who have been diluted by the new acquirers of such companies.

We urge all joint stock companies' managements and boards to consider minority shareholders rights' and interests to avoid such law suits, and to abide by more ethical corporate governance rules and principals of equity.

No comments:

Post a Comment