Onix Ltd, a company registered in Ukraine, may lose $40mn worth of investments through improper conduct on the part of Laos-based Lao Geo Consultant Company and MK-GROUP (company incorporated in Russian Federation) resulting in an unlawful dilution of Onix’ majority stake in Laos-based Dao Lao Co., Ltd., Onix’ press service reported on Thursday.
Onix Ltd, represented by its Director Mrs. Kateryna Kozhushko, acquired 60% in Dao Lao Co., Ltd in 2010. It has invested to date a total of $2mn into the company. The proceeds have been spent on geological exploration works in Lao People’s Democratic Republic under a Gold Prospecting and Exploration Agreement in Sanakham District, Vientiane, as signed between Dao Lao Co., Ltd and the Government of Laos. The present conflict prevents Onix Ltd from executing an option to sell its share in Dao Lao Co., Ltd to an investor, which can lead Onix Ltd to lose $40mn.
In 2012, suspicions of misappropriation of funds caused Onix Ltd to call off 2 out of its 4 representatives on the Board of Dao Lao Co., Ltd, Messrs Maxim Dyschyuk and Dmitry Andreychenko an replace them with a plenipotentiary representative who would have the exclusive right of signing all financial documents at Dao Lao Co., Ltd (including the approval of all banking transactions in accounts belonging to Dao Lao Co., Ltd). While this move on the part of Onix Ltd appears quite normal in light of international practice, it has given rise to a conflict between shareholders.
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