Dimitrov, Petrov & Co.’s lawyers have successfully represented Pharmhold AD before the Bulgarian Supreme Administrative Court (SAC) in its appeal of a decision by Bulgaria’s Financial Supervision Commission.
According to DPCo., on December 28, 2015 the Financial Supervision Commission issued a decision refusing to approve the prospectus for admitting an issue of Pharmhold shares to trading on the regulated market. Acting on behalf of Pharmhold DPCo. appealed that decision, arguing that, "despite the broad and to some extent unclearly formulated supervisory powers of the Financial Supervision Commission,” it was nonetheless obligated to carry out its supervisory duties "strictly within the limits defined by law.” According to the firm, “in any case, those limits shall be interpreted in compliance with the principles of organization and operation of the capital markets, including such principles that are established in the EU law provisions. Trespassing those limits leads not only to disadvantages for the issuers, but also to violation of investors’ interests, having an overall negative impact on transparency, predictability and trust in the capital market. In general, it shall be beyond the Commission’s discretion to assess the risks of the issuer’s investment, provided that those risks are realistically explained in detail to the investment community in the prospectus of the issuer."
On May 19, 2016, DPCo. reports, "the SAC upheld Pharmhold’s appeal and returned the case to the FSC, "giving mandatory prescriptions regarding the interpretation and applying of the law with respect to the matters above."
The decision of SAC’s three-member panel is not final, and the FSC may appeal.
The Dimitrov, Petrov & Co. team consisted of Partner Metodi Baykushev and Senior Associate Dimitar Karabelov.