“The claim is essentially a technical argument around the administrative formalities required for the calling of the 06.09.2010 general shareholders’ meeting by the fund’s previous administrators. Given separate resolutions adopted in more recent shareholders’ meetings, Franklin Templeton does not consider this court decision to have any material effect on the fund,” the statement noted.
The Bucharest Court Wednesday admitted in part a request filed by Ioana Sfaraiala, a shareholder of Fondul Proprietatea, to annul some of the decisions taken at a shareholder meeting held September 9, 2010.
Sfaraiala argued the fund had failed to publish a bill to amend its bylaws in the legal timeframe, thus voiding Franklin Templeton’s appointment as sole administrator of the fund.
The court decided to annul Franklin Templeton’s appointment, as well as the shareholders’ decisions to dismiss the board of the fund and to elect the members of the Representatives Committee.1
Franklin Templeton has 15 days to appeal the court’s decision.
The fund manager said it has not yet received any official documents from the Bucharest Court regarding the matter.
“Once this is available, Franklin Templeton will consider what further legal steps may be appropriate and provide an update to shareholder,” the statement noted.
Fondul Proprietatea was set up in 2005 to compensate Romanians whose properties were seized during communism.
At around 13:00 hours Friday, Fondul Proprietatea traded down 0.21% at RON0.4251 a share, amid a slightly rising market. Thursday, the fund closed down 1.5% on the day.