Summary

In its judgment from 11 June 2014 on case 3 2-1-55-14, the Civil Chamber of the Supreme Court found that based on the effective law, the person entitled to exercise the rights arising from the shares, incl. to file a statement of claim to protect their interests, is the holder of a nominee account, i.e. the person, whose name is entered in the share register. The Supreme Court did not clearly preclude the possibility of an investor to exercise the securities rights in parallel to the holder of the nominee account; however, the lower court has still come to that conclusion. According to the authors, such interpretation may directly restrict the possibility of entitled persons to exercise or protect their rights.

The authors analyse the valid regulation and suggest an alternative interpretation, which based on their opinion is more consistent with the economic interests of the holder of the nominee account and the actual holder of securities.