Luxembourg court rules in favor of Kernel for the fourth time in minority dispute

The Luxembourg Court of Appeal rejected another claim by minority shareholders, namely to suspend the decisions on the company’s capital increase in 2023.

This is Kernel’s second court victory in the past week, the agroholding’s press service reported.

Thus, on March 20, the Luxembourg Court of Appeal ruled in favor of Kernel in the case on increasing the capital of Kernel Holding S.A. through an additional share issue. It rejected the claim of minority shareholders and confirmed the legality of the previous ruling of the court of first instance.

“Another court victory confirms the legality of the company’s actions in a dispute with a group of shareholders who own 0.4% of the shares and are trying to block strategic financial decisions. The plaintiffs tried to urgently stop the results of the $60 million capital increase, which took place in 2023, in court. The court ruled: there are no grounds for suspending or blocking the company’s decisions,” Kernel noted.

In particular, the court found that the plaintiffs did not prove any violations by the board of directors during the capital increase, nor any imminent harm to their rights. The appellants are also obliged to reimburse Kernel for legal costs.

Kernel Legal Director Artem Filipiev noted that they observe the consistent position of Luxembourg.

“The company did not violate the law, and we are confident of our victory in other ongoing processes, including the delisting of the company from the Warsaw Stock Exchange,” commented Artem Filipiev.

Recall that on March 18, it became known that the Luxembourg Court of Appeal rejected the complaint of minority shareholders who tried to appeal the decision of Kernel’s annual general meeting of December 11, 2023.