Subject of Dispute: Invalidation of Agreements on the Acquisition of PrivatBank Shares, Concluded during the Bank’s Market Exit Procedure in December 2016.
Main Court Arguments:
1. The court established that the plaintiff’s chosen method of protection (invalidation of agreements) is ineffective, as it cannot restore the rights of the former shareholder.
2. The court referred to the European “bail-in” practice, which provides for the conversion of an insolvent bank’s debts into shares with the aim of its rescue.
3. Legislation prohibits the recovery of shares from the state-investor and provides for the only method of protection – monetary compensation.
Court Decision: Terminate the proceedings in the case, as the claim cannot be satisfied on its merits.
