Today, the Moscow Arbitration Court will continue hearings on a suit by N.P.Gemini Holdings and Nimegan Trading on invalidating the decision of the Federal Commission for the Securities Market to register an additional issue of YUKOS shares. These two companies filed a suit with the Arbitration Court in January 2004. Due to a request of the participants of the proceedings, the suit is heard behind closed doors.
As the suit points out, N.P.Gemini Holdings purchased 117,539,475 additional shares. Nimegan Trading is a YUKOS shareholder that has a preferential right for buying shares of the additional issue. In the opinion of plaintiffs, their rights were violated while floating the shares, and the issue was executed with breaches of Russian laws. Plaintiffs accuse the commission of violating the procedure of registration of an additional issue of shares and claim that the decision to hold the floating should be recognized illegal and the issue should be invalidated.