SCS violates legislation to protect investors

Baku/21.02.14/Turan : Friday 21 February the holder of minority interests in two joint stock companies held a press conference during which he accused the state structure for the protection of investors' rights in violation of the regulatory scope of this legislation.

The shareholder Hafiz Babali said the management of Gabala Gushchuluq (GG, Gabala Poultry Farm) refused to provide him with the documents provided by the legislation .

He has repeatedly called on the matter to the State Securities Committee , which after lengthy correspondences eventually punished not guilty of the offense , that is, the head of the company, as a legal entity. In respect of GG they applied administrative sanctions under Article 324.2 ( failure to provide the necessary documents for the implementation of control activities ) in the amount of AZN 1,500.

" During the hearing it was established that the executive body of the company intentionally violated my rights and therefore, in accordance with Article 16 of the Code of Administrative Offences (CAO) its official should have been brought to administrative liability for failure to perform its functions," said Babali . The amount of the fine in respect of the official correspondence in Art. 220 of CAO (violation of the rights of shareholders ) is from 600 to 700 manat.

Shareholder claims that the SSC intentionally violates the legal requirement . "According to Art. 7.1 of the AR Law "On protection of investors in the securities market ," 10 % of the amount of the fines accrue to the SSC. Therefore, this body intentionally uses the highest measure of administrative punishment , knowing that it is contrary to the law, " said Babali .

According to Babali , the SSC also interpret in their own the legislation on the rights of shareholders. " I went to the JSC Bakelektroqaynaq requesting to provide certain documents in accordance with the law. After lengthy correspondences the Chairman of the Board of Suleyman Mammadov finally "pacified " and found how to get around the law , he asked me he personally come for these documents. "

The legal department of SSC believes that the position of S. Mammadov, who simultaneously holds the position of General Director of LLC Baku Steel Company (tenant of the assets of Bakelektroqaynaq), does not contradict the law.

"In SSC they tell me that the JSC does not refuse to provide the documents to me. It turns out that to get the documents I need to lose not only time, but also spoil the nerves. In normal countries, these documents are sent to shareholders even without request, " stressed Babali .

He believes that in the case of Bakelektroqaynaq SSC simply did not risk even to penalize the legal entity, as in this case it is not an "ordinary" offender, but a company backed by influential people .

"In the SSC they did not wish to quarrel with them for the sake of a minority shareholder, whose voice is heard by no one," concluded Hafiz Babali the shareholder . - 0C-