Administrative resources should not be used to put pressure on the courts - expert

14:56, 18 April 2014
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Corporate conflict in Swissport Ukraine LLC must be resolved solely on the basis of the current legislation of Ukraine, the Charter and the Treaty of the company’s Members, with mandatory provision of objectivity and independence of judicial proceedings, believes the lawyer, an expert on aviation law, Alexander Scherban.

According to him, a violation of the Swiss party of Swissport Ukraine LLC - Swissport International Ltd. – of the Charter and the Treaty of Swissport Ukraine LLC Membes is obvious, and the decision issued by the Supreme Economic Court has no legal basis and was due to the use of administrative resources.

"On the meeting of the members of Swissport Ukraine LLC, held on March 6, 2012, Swissport International Ltd. voted its 70.6 % to increase the authorized capital of Swissport Ukraine LLC. Another participant of the company - Ukraine International Airlines – gave its 29.4 % votes against such a decision. It must be taken in to account that the Charter and the Treaty of Swissport Ukraine LLC contain the following provision - the decision to increase or decrease the authorized capital of the company can only be adopted if at least 75% of the votes is given “for”. In addition the Treaty of Swissport Ukraine LLC provides that a participant who has violated its obligations is to sell its stake in the Company to other party. Consequently, another member of Swissport Ukraine LLC - Ukraine International Airlines - had sufficient grounds to buy a stake owned by Swissport International Ltd. - said the expert.

Due to refusal of Swissport International Ltd. to comply with the rules of the Treaty and the Charter of Swissport Ukraine LLC, Ukraine International Airlines had to apply to the court.

Having considered the requirements set out in Ukraine International Airlines claim, Economic Court of Kiev on October 26, 2012 issued a decision which admitted agreement on transfer of 70.6 % share in Swissport Ukraine LLC to UIA concluded, as well as recognized UIA’s ownership over 70.6% share in Swissport Ukraine LLC. On March 27, 2013 Kyiv Court of Appeal confirmed the rightness of UIA in conflict with the Swiss company.

Swissport International Company filed cassation appeal despite the complete absence of legal arguments in support of its position. Legal circles was surprise by the fact that the Supreme Economic Court of Ukraine on October 2, 2013 overturned the decision of the courts of first instance and appeal and reversed the case for a new trial in the Commercial Court of Kiev. It is hard to believe that such extremely dubious decision from a legal point of view could be made without influence of administrative resource. I am sure that in the process of cleaning the Ukrainian courts from unscrupulous and corrupt judges, the use of administrative pressure on the court would be impossible. We can expect an objective consideration of Ukraine International Airlines claim in relation to corporate conflict resolution in Swissport Ukraine LLC - said Alexander Scherban.

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