OREANDA-NEWS. October 07, 2010. JSC Ventspils nafta (VN) urges government representatives, as well as all shareholders, to be present at the shareholders meeting of JSC Latvijas Kugnieciba (LK) on October 8th, 2010, to focus on reducing the costs of LK management and delivering an efficient and business focused company. As previously stated, the LK Supervisory Council has cost 5 million lats in the last 3 years. In the current economic climate and when benchmarked against other similar companies, VN believes that these costs are unsustainable and not in the interests of any shareholder.

The concerns of the State Social Insurance Agency (VSAA) at losing its role in LK, as expressed by the Minister of Welfare Uldis Augulis representing Zalo un Zemnieku Savieniba (ZZS) political party, simply have no grounds, as VN is not planning to support reduction of the number of Supervisory Council members nor changing the articles of the association. However it does believe that LK has to significantly reduce its management costs. VN Supervisory Council sets a good example in that it has 11 members of its Supervisory Council but none receive a salary. Therefore VN believes that an efficient, 12 person LK Supervisory Council with no cost, is the right business model for the future.

Since January 2010, VN has expressed its concerns about the high costs and the unprofessional, poor quality management of its associated company LK and has asked for a shareholders meeting to be called immediately. In addition, throughout this year, VN has not had the chance to excersise its shareholder rights. VN remains concerned about the illegal cancellation of the LK shareholders meeting that is due to be convened on 8th October, 2010.

In the best interests of all the shareholders in LK and all Latvian taxpayers, VN management believes that now is the time for LK to be run in a professional, efficient, businesslike and low cost manner. To make this happen VN urges all shareholders to be present at the 8th October shareholders meeting, at the time and place that was originally appointed (October 08, 2010 at 10.00 a.m. at the hotel “Monika Centrum Hotels”, 21 Elizabetes Street, Riga). VN also welcomes government representatives to attend as observers at the meeting venue.