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Court rejects Magyar Telekom appeal

A second-instance court has rejected Magyar Telekom's appeal of a first-instance ruling to nullify shareholders' resolutions passed at a company AGM on April 25, 2008, Magyar Telekom announced on the website of the Budapest Stock Exchange on Wednesday morning.

Magyar Telekom noted that the company received the second-instance court's decision dated November 2, 2009 on December 8.

The first-instance decision to annul the resolutions, including the resolution on dividend, thus becomes final and enforceable.

Magyar Telekom said that the company would address the ruling by passing confirmatory shareholders' resolutions with respect to those in question.

Because the nullification date of the AGM resolutions is July 7, 2009, the dividend for the year 2007 paid by July 6, 2009 continues to qualify as a dividend, thus the ruling does not entail any obligation or action on the part of company shareholders.

Magyar Telekom added that the matter could entail more corrective actions and other unforeseen detrimental effects on the company. (MTI-ECONEWS)