JDP successfully helped its client defend against an unjustified request for appointing a special purpose auditor.
Thanks to the effective legal advice provided by the JDP Corporate Litigation / Post-M&A team, a request filed by a minority shareholder for appointing a special purpose auditor was dismissed.
The public company received a request for the appointment of an auditor to conduct a large-scale audit of the company’s operations by a highly specialised entity. JDP, representing the company, presented convincing arguments that the request was defective, both in terms of its form and content, including extensive arguments that the request was used as a tool of corporate blackmail exposing the company to unnecessary expenses.
After hearing the position of the Company’s authorities and the pleadings, the court acknowledged the arguments presented by JDP and dismissed the shareholder’s request for appointing a special purpose auditor.