The management of JSC Latvijas balzams informs that after several years of legal proceedings between the leading alcoholic beverage producer in the Baltics, JSC Latvijas balzams, and the association representing some minority shareholders, the court has rejected claims against JSC Latvijas balzams.
The applicant or JSC Latvijas balzams minority shareholders ‘association complained about the observance of the procedural law of commercial law, the wording of the announcement about convening the shareholders’ meeting, issuing copies of documents, as well as asked the court to oblige JSC Latvijas balzams to provide the association with commercial information it has not been entitled to receive, moreover, which was already published to the extent legally available.
The lawsuit initiated in 2018 was also related to important corporate law issues, on which no unified court practice has been established in Latvia so far: recognition of resolutions of shareholders ‘meetings on the use of profits as invalid, as well as issuance of shareholders’ decisions and information on concluded agreements to the association, created by some shareholders.
The court in May 2020 rejected the claims. The court also acknowledged that in the context of the particular dispute the rights of the association differ from the rights of its members – shareholders.
The management of JSC Latvijas balzams emphasizes that the court opinion in favour of the company reaffirms that Latvijas balzams complies with all corporate governance and legal requirements, as well as fulfils the necessary obligations in cooperation with its shareholders.
JSC Latvijas balzams is a leading producer of alcohol beverages in the Baltics with a history steeped in tradition since 1900. The company has two production facilities in Riga – a distillery of strong alcohol beverages and sparkling wines and a light alcoholic beverages production plant. Latvijas balzams is one of the most significant exporters in Latvia – its products are available in 175 countries worldwide; the company is one of the largest tax payers in Latvia. Since 2015, Latvijas balzams has been a part of Amber Beverage Group.
JSC Latvijas balzams
Chairman of the Board