Minority shareholders accused SSC of favoring majority stakeholder

A group of shareholders Bakelektroqaynaq held a press-conference, during which serious allegations were made against the State Committee on Securities and the patronage of the Ministry of Taxes for the main shareholder who violates the provisions of the Civil Code and Tax Code.

Since 2009, the minority shareholders have been excluded from the management of Bakelektroqaynaq. General Meetings of Shareholders are completed in a matter of minutes. The organizers do not provide annual reports or annual financial statements, denying shareholders the right to ask questions, to act quickly and confirmation to a vote and leave the courtroom without giving attention to the objections of minority shareholders present, the shareholder Shahin Alizadeh said.

This year, prior to the general meeting shareholders appealed to the SSC with a request to take part in it to prevent such offenses. But SSC refused it, which led to a repetition of scenes of past years. SSC, despite the invitation, did not send a representative at the press conference, said Hafiz Babali - a shareholder.

According to him, the SC has a patron as the majority shareholder of LLC Baku Steel Company. Shareholders re-turned to the government agency supervising the securities market with a demand to restore their violated rights, despite the fact that in the past SC had not taken any action on this matter.

The shareholder Vezir Rajabov said that the reluctance to provide financial reports is due to the fact that the JSC Bakelektroqaynaq violates tax laws, giving his entire estate to LLC Baku Steel Company to rent for nothing. The Ministry of Taxes shows a "blind eye" to this mess, said the shareholder Shamsaddin Allahverdiev.

JSC Bakelektroqaynaq was privatized in 1998. The authorized capital of the company amounts to more than 20 million manat. LLC Baku Steel Company owns more than 98% of the shares. The remaining 2% of shares are divided among 39 individuals. LLC Baku Steel Company, with an annual production capacity of 700 thousand tons of steel, is a monopoly in the market.

Turan asked about the allegations the SSC and the Ministry of Taxes. The press service of the State Securities Committee declined to comment on what is happening and asked to apply in writing. The Taxes Ministry stated that the facts made public at the press conference will be investigated in a short period. In the case of confirmation of violations of the Code they will apply legal measures. - 08C-