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SC cancelled SEC’s decision for fine of €80k to Aspis

Recent decision of the Supreme Court on the Securities and Exchange Commission:

Aspis Holdings Public Company Ltd vs. SEC (no. 1589/2009)

The appeal concerned a fine of €80,000 and suspension of voting rights of more than 30% imposed to Aspis Holdings Public Company Ltd for violating article 13(1) of the Takeover Bid Law 2007 (did not comply with the obligation to submit a public offer to all shareholders of the titles of ADHP Holdings Public Company Ltd for all titles held, which was activated with the acquisition of ADHP shares of 31.5% (percentage of more than 30%)).

The reasons for the appeal were mostly that the administrative fine was a product of improper exercise of discretion and that the decision was taken by an incompetent institution, the composition of which suffered at the taking of this decision.

Specifically, the applicant supported that the members of the Commission (Messrs. G. Charalambous, A. Hadjipieris, M. Moiseos, M. Kyprianou and S. Kokkinos) do not have the qualification of “proven experience and training in the money market and the capital market”, pursuant to article 11(2) of the SEC Law 2009.

On 12.8.2011, the Supreme Court cancelled SEC’s decision to the aforementioned case, since in the announcements for the appointment of the members of the Commission there is no specific reference on the required qualifications of the members and how it is justified that the members have those qualifications.

The Court followed the decision of the plenary court to the case of Exxon Mobil Cyprus Ltd vs. Commission for the Protection of Competition case no. 1544/2009 dated 25.5.2011, where a similar allegation had been examined.
Friday, 12 August, 2011 - 16:21