OREANDA-NEWS. November 10, 2010. At the regular shareholders meeting of JSC Ventspils nafta (VN) convened on 11 November 2010, one of the main issues will be approval of VN financial report for 2009 according to company law .As informed previously, JSC Latvijas Kugnieciba (LK), associated enterprise of VN, has been consistently breaking corporate laws, being unable to convene regular shareholders meeting, as well prepare audited financial reports for 2009 as required by Law. Therefore VN has not been able to provide consolidated annual report for 2009. VN has prepared, published and is planning to approve the stand alone financial report for 2009 according to the law and regulations.
 
Admonitions from LK regarding financial reports of VN for 2009 are absurd from a company that has not been able to convene and hold legal shareholders meeting for more than a year, nor able to provide the shareholders information on LK performance in year 2009.
 
VN also emphasizes that the claims of company LATMAR, owned by LK, regarding items 6 and 7 of the agenda for VN regular shareholders meeting on 11 November 2010, that was introduced on agenda according to the request from shareholder JSC Latvijas Naftas Tranzits, are groundless and prove LK desperate attempts to sidetrack attention from the fundamental problems of LK itself. Since the beginning of this year VN has expressed its concerns regarding the financial situation of LK, the inability of LK to fulfill its obligations, as well as the constant mismanagement of the company, which is also proven by purchase of VN shares.
 
As informed, on 7 July 2010 VN extraordinary shareholders meeting did take place and a new Supervisory Council of VN was elected. Supervisory Council elections have fulfilled the claim from VN shareholder JSC Latvijas Naftas Tranzits, since members of Supervisory Council Aleksejs Ovods, Martins Kveps, Valerijs Godunovs and Gatis Gravitis have left their duty. Taking that into consideration, agenda item 6 and 7 for VN regular shareholders meeting on 11 November 2010 is no longer relevant and cannot be reviewed. Publishing draft resolution that would be factually impossible to execute, would be a misleading activity towards shareholders and investors from the side of VN, that is forbidden by Law.