In the first half of this year, the State Securities Committee received 166 letters of complaints about violations of the rights of investors in 380 joint-stock companies. The trend for both positions has grown significantly, reflecting the deterioration of the situation with the rights of investors in the securities market.
According to the published information, the SSC, compared with the same period of 2012, the number of complaints has increased by 43%, and appealed stock by 74%. After a certain proceedings supervisory authority has applied administrative sanctions in relation to the ratio of 116 companies, which is 49% more than in January-June 2012. The joint-stock companies were fined by only 24,000 manat.
The nature of the violations of the rights of shareholders of the SSC is not reported. However, it is well known that the majority of joint stock companies created as a result of the privatization of state-owned enterprises (totally privatized nearly 1,600 such companies) do not comply with the stipulated in the Civil Code of the basic rights of the shareholders. Annual general meetings of shareholders are held, notice of these meetings, shareholders are not sent documents (minutes of the general meeting, the shareholders' register, charter) shareholders are not available, etc. "SSC, despite certain rights to protect shareholders' rights in court, for these cases, limited to the imposition of an administrative fine in respect of the legal person, without understanding even the originator of what is happening," the expert on the stock market R. Hussein told Turan.
According to him, in compliance with Articles 5.1.3 and 5.2 of the Law of Azerbaijan Republic "On protection of the rights of investors in the securities market" dated June 16, 2000, the SC should make public general guidance on specific cases and sanctions against violators of the law. However, the SSC hides the data and is limited to the provision of aggregate data for the period. Therefore, investors are deprived of a source of information about offenses on the securities market, resulting in a subsequent round of tensions with regard to their rights, he said. - 08B -
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