Minority shareholders take “golden parachutes” away

Rostelecom lost the arbitration dispute with the shareholders of the company concerning the “golden parachute” of its former president Alexander Provotorov in the second instance. The judgment that the Board illegally approved the payment of the compensation in the amount of 200,88 million roubles to the top manager has entered into force, and now the shareholders plan to fight for compensation of the damages incurred by them.

According to Managing Partner of the Law Firm "YUST" Evgeny Zhilin, Mr. Provotorov will appeal against the judgment of the second instance and will request the court to suspend the validity of the court act. Mr. Zhilin said that if the judgment of the cassation instance is also against the respondent, then “repayment of the amount, which was received without due foundation, would be the most logical variant for Mr. Provotorov”. The Advocate pointed out: “In this case, the compensation will have to be repaid with interest for the use of alien funds, and the court practice on the matter is on the shareholders’ side”.