September 28, 2010 / 4:00 PM / in 7 years

Russia's RUSAL sues Norilsk in Russia over AGM

MOSCOW, Sept 28 (Reuters) - Russia’s UC RUSAL (0486.HK) has filed a lawsuit against Norilsk Nickel (GMKN.MM), the world’s largest nickel and palladium miner, to overturn a disputed board vote, RUSAL said on Tuesday. The complaint against Norilsk Nickel, a copy of which was e-mailed to Reuters by RUSAL, said RUSAL should have received more than its three seats when the board was re-elected at the company’s annual meeting.

“The plaintiff participated in the Meeting, voting for its nominees; however, only three were elected ... which clearly does not reflect the size of its stake,” RUSAL said in the complaint, filed in a court in Krasnoyarsk region, home of Norilsk Nickel as well as key RUSAL production units.

The complaint alleges that shares held by Norilsk subsidiaries were represented at the meeting and artificially raised the quorum, while holders of Norilsk Nickel’s foreign listed depositary shares (NKELyq.L) were represented in the voting without having provided proxies.

Norilsk said the board of directors was “duly elected” and that it represented the interests of all shareholders of the company. RUSAL has also filed another suit in London against the Interros consortium, which, like RUSAL, owns about a quarter of Norilsk Nickel. The two are at odds over the running of the miner. [ID:nLDE67A0FD]

An extraordinary general meeting (EGM) is scheduled for Oct. 21 to re-elect the board. Norilsk has alleged procedural violations by RUSAL ahead of the EGM, telling prosecutors there were inconsistencies in the corporate charter submitted in support of its nominees for the board, it said in a statement on Monday. (Reporting by Melissa Akin; Editing by Will Waterman)

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