13th May 2014 14:55
LONDON (Alliance News) - JKX Oil & Gas PLC Tuesday said the UK Court of Appeals has ruled that the restriction notices JKX served on shareholders Eclairs Group Ltd and Glengary Overseas Ltd in May 2013 were valid.
The Eastern Europe-focused oil and gas exploration and development company said the court has now dismissed the cross-appeals brought by Eclairs but gave the two parties permission to appeal the decision to the Supreme Court.
The company has been involved in a long-running dispute stretching back to 2013 with Eclairs and Glengary, when they sought to remove Chief Executive Paul Davies and Commercial Director Peter Dixon and replace them with three of their own nominees.
Eclairs holds 27.47% of JKX shares, while Glengary hold 11.42%.
The High Court had previously found that attempts by JKX to limit Eclairs' and Glengary's voting right powers had exceeded acceptable levels, but the Appeal court has now said that the restrictions imposed by the board on Eclairs and Glengary are wholly valid.
Earlier this month, JKX said Eclairs has failed to answer questions posed over a year ago about its nominees' experience, qualifications and general suitability as well as the nominees' relationship with Eclairs or with any other JKX shareholder.
In addition, the firm said its own investigations revealed that one of the Eclairs' nominees, Stanislav Yudin, was on the wanted list of the Ukrainian Ministry of Internal Affairs and faced charges for "abuse of authority or office with grave consequences" and was reported in the Ukrainian press to have fled to the UK.
JKX Oil & Gas shares were up 5.5% to 57.50 pence on Tuesday.
By Tom McIvor; [email protected]; @TomMcIvor1
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