GENERAL MEETING DRAFT - Bankier.pl

Valauret S.A.
461
>> Consolidated Financial Statements
Part E – Information on risks and related risk management policies
In 2001, the plaintiffs (Valauret S.A. and Hughes de Lasteyrie du Saillant), bought shares in the French
company Rhodia S.A. They maintain that they suffered losses as a result of the drop in Rhodia share
prices between 2002 and 2003, allegedly caused by earlier fraudulent actions by members of the
company’s board of directors, which made the financial statements untruthful and misleading.
In 2004, the plaintiffs filed a petition claiming damages against the board of directors, the external
auditors, and Aventis S.A. (the alleged majority shareholder of Rhodia S.A.). Later they extended their
claim to other parties, arriving at a total of 14 defendants, the latest being Bank Austria (BA), against
which a petition was filed at the end of 2007, as successor of Creditanstalt AG (CA). The plaintiffs
maintain that the latter was involved in the aforementioned alleged fraudulent activities, as it was the
credit institution of one of the companies involved in said activities. Valauret S.A. is seeking damages of
�129.8 million in addition to legal costs and Hughes de Lasteyrie du Saillant is seeking damages of �4.39
million.
In BA’s opinion, the involvement of CA in fraudulent activities is without grounds. In 2006, well before the
action was extended to BA, the civil proceedings were suspended following the opening of criminal
proceedings lodged by the French public ministries based on the criminal charge against persons
unknown by the same plaintiffs.
In December 2008, the Commercial Court of Paris suspended the civil proceedings against BA.
In relation to such circumstances no provisions were made.
Treuhandanstalt
BA (formerly Bank Austria Creditanstalt AG) has joined as a party in support of the defendant AKB
Privatbank Zürich AG (formerly a subsidiary of BA and formerly Bank Austria (Schweiz) AG) in a suit
relating to alleged claims of Bundesanstalt für vereinigungsbedingte Sonderaufgaben “BvS” (formerly
Treuhandanstalt), the German public body for the new Länder reconstruction.
Essentially it is asserted that the former subsidiary embezzled funds from companies in the former East
Germany. BvS is requesting compensation for damages of approximately �128 million, plus interest
dating back to 1992.
On June 25, 2008 the Zurich District Court rejected the request of BvS, with the exception of the amount
of �320 thousand that, in the Court's opinion, represents fees and commissions applied in good faith, in
accordance with a contract that was no longer valid, by the former subsidiary of BA. Following the appeal
submitted by both parties, the suit will continue in front of the Zurich Court of Appeals.
At the time being it is not possible to reliably estimate the final result of the action, nor determine the level
of responsibility, if any responsibility exists. Presently, in compliance with international accounting
standards, no provisions were made.
Association of small shareholders of NAMA d.d. in bankruptcy; Slobodni sindiKat
Zagreba�ka was called before the Zagreb Municipal Court by two parties: (i) the association of small
shareholders of NAMA d.d. in bankruptcy; (ii) Slobodni Sindikat.
The parties allege that Zagreba�ka violated the rights of NAMA d.d., as minority shareholder of
Zagreba�ka since 1994. The parties assert, inter alia, that Zagreba�ka did not distribute to NAMA d.d.
profits in the form of Zagreba�ka shares.
As such, the plaintiffs ask the Court to sentence Zagreba�ka to assign ownership of 44,858 Zagreba�ka
shares to NAMA d.d. or, alternatively, to pay the equivalent amount in cash that the plaintiffs estimate at
Kuna 897,160,000.00 (approximately �123.7 million) assuming that each share has a value of Kuna
20,000.
Zagreba�ka maintains that the plaintiffs do not have legal standing in that they have never been
Zagreba�ka shareholders, nor the holders of the rights allegedly violated.
Zagreba�ka maintains that the alleged violation of rights due to the former minority shareholder NAMA