Return of Shares of a Public Company
Claim for Return of Shares of a Public Company Because of Non-Payment of the Consideration
Representation of the claimant shareholders in a public company who agreed to sell their holdings in the company. The contractual consideration was not paid, and agreements were signed to extend the payment dates. The extension agreements stipulated that if the payments are not paid to the claimants, the shares will be returned to the claimants, and any amount paid on account of the shares’ consideration will be forfeited by them as agreed compensation. The buyer argued that there were discrepancies in the presentations made regarding the company’s shareholders’ equity and accordingly, inter alia, the amount of consideration it had to pay should be reduced. At the end of the proceedings, the claim was accepted, and the shares in the public company and its control were returned to the sellers. Furthermore, the amount paid on account of the consideration was forfeited and remained with the claimants as agreed compensation under the extension agreements.