Riga Stock exchange                                                02.05.2005



RSE appeals the FCMC decision, denying unequal approach to listed companies 



On April 29, 2005 the RSE appealed to Administrative Court the Financial and 

Capital Market Commission decision No.32, with the regard to two issues: equal 

approach by the RSE to listed companies, and the FCMC competency to cancel the 

sanctions applied by the RSE to JSC “Latvijas kuģniecība”. 

The RSE does not believe there is any reason that RSE be reproached for unequal 

attitude towards its listed companies. The ambiguous and inconsistent FCMC 

decision may be a constraint in introducing disclosure and corporate governance 

practices that comply with the EU and global standards.  FCMC, while taking the 

decision, must have overlooked its impact on thousand of minority shareholders 

and foreign investors – right now they feel confused about exercising their 

rights to information transparency, and about the RSE role in defending their 

interests. Daiga Auziņa-Melalksne, RSE Chairman of Management Board, says: “At 

the same time, the RSE appreciates the FCMC confirmation that the RSE may insist 

on disclosure of AGM draft resolutions, including candidates to Supervisory Board.  

This is in full accordance with the national law and the EU commission recommendations, 

as well as good corporate governance practices.”

The RSE deems it necessary to appeal the decision in order to prevent a situation 

that issuers take the advantage of the precedent and avoid disclosing information. 

It is also important to clarify to how far do the FCMC competencies go to overrule 

the sanctions by RSE. 

Additional information:

Daiga Auziņa-Melalksne, Chairman of Management Board, RSE, 

721 2431 e-mail: riga@omxgroup.com



BACKGOUND

According the law, the RSE Listing and Disclosure Rules, and listing agreement, the RSE 

may require that a listed company disclose draft resolutions of general meeting of 

shareholders, including nominees to Supervisory Board. “Ventspils nafta” on 9.02.2005 

lodged a complaint with FCMC on the RSE, after the latter had requested that JSC 

„Latvijas kuģniecība” disclose the nominees to Supervisory Board before the EGM with a 

single item on the agenda – Supervisory Board elections. The EGM was called upon the 

initiative of “Ventspils nafta”, a major shareholder of „Latvijas kuģniecība”. 



Unofficial translation by RSE