Conexus appeals the regulator’s decision violating the shareholders’ rights at court

The Administrative Regional Court has accepted the application submitted by JSC Conexus Baltic Grid, the unified natural gas transmission and storage system operator, requesting to cancel the requirements set in the decision of Public Utilities Commission (PUC) for the shareholders regarding the certification of operator that cannot be implemented legally by JSC Conexus Baltic Grid not violating the shareholders’ rights. 

JSC Conexus Baltic Grid draws the attention to the fact that the regulator’s conditions included in the decision by their nature are addressed to the shareholders and JSC Conexus Baltic Grid as a commercial company cannot legally influence the action of shareholders. JSC Conexus Baltic Grid emphasises that interference in shareholder’s decisions would be a dangerous signal that could initiate a row of further legal procedures and financial losses for the commercial company.

So, JSC Conexus Baltic Grid as the only possibility sees addressing the court to eliminate the risk that PUC applies a fine for non-compliance with certification requirements. JSC Conexus Baltic Grid ask the court to invite the shareholders as the third party taking into account that the decision affects their rights and legal interests.

Structure of JSC Conexus Baltic Grid is formed so that company’s strategic decisions are made by the council, but the board is responsible for operative decisions.