Aequo got a precedent-setting judgement in a privatization dispute

Aequo successfully acted for Rozdilska Tsegla in a state property privatization dispute at the Supreme Court of Ukraine.

The dispute arose with regard to an agreement under which the State Property Fund of Ukraine sold the shares in a state-owned company. The claim was brought by a disqualified auction participant which had been established shortly before the auction.

In a precedent-setting judgment the Supreme Court stated that the legal entities participating in state property privatization should bear equal obligations with regard to submission of documents required by law, such as corporate filings and information on beneficial owners etc., notwithstanding the time of their establishment.

The judgment in this case provides long-awaited clarity on the scope of documents and information the privatization bidders should submit to the State Property Fund. The former practices evidenced that in some cases the bidders had been admitted to privatisation auctions without full documents disclosure as required by law. As a result, entities with doubtful founders or financial data acquired state property circumventing the law. The Supreme Court judgement is to terminate these practices.