Press Releases

Update on the law suit regarding the 2008 shareholders' resolutions

Budapest, March 23, 2010 08:30

Magyar Telekom informs its shareholders about a recent development in the law suit regarding the shareholders resolutions of April 25, 2008, and its relating position, as follows:

In the law suit filed by two minority shareholders on May 23, 2008, the first instance decision dated May 13, 2009 rendering the resolutions (except for one procedural resolution) passed by the AGM on April 25, 2008 ineffective became final and enforceable, as the request for acceptance of the late appeal filed by the law firm representing Magyar Telekom was rejected by the second instance Court in its order dated November 2, 2009 and received by Magyar Telekom on December 8, 2009 and this order was approved by the Supreme Court in its order dated February 16, 2010 and received by Magyar Telekom on March 22, 2010. No further appeal is allowed in connection with the order of the Supreme Court.

As previously disclosed, we will address the decision by proposing that confirmatory shareholders' resolutions be passed by our shareholders at the next annual general meeting, which is April 7, 2010, with respect to the resolutions rendered ineffective.

As also disclosed previously, the above mentioned first instance decision rendered the shareholders' resolutions in question (including the resolution on dividend) ineffective from July 7, 2009. As a result, the dividend for year 2007 paid by July 6, 2009 continue to qualify as dividend, and the decision does not result in any obligation of, nor requires any action by, the shareholders.

We cannot fully exclude that Magyar Telekom will be required to take other corporate actions in connection with this decision. Also, we cannot provide any assurance that the decision would not have other adverse effects on the Company that are not currently foreseen.