Shareholders Risk Losing Possession

<BR>The share emissions of some of the city's joint-stock companies could be declared void, and their shareholders risk losing their stake.<BR>At least three companies, OAO Kholdingovaya Kompaniya Elvo, AOOT Gostinitsa Sovetskaya and AOOT Sovavto Sankt Peterburg began to distribute shares more than two years ago, but have yet to present accounts of the results of the share emissions to the regional office of the Federal Securities Commission (RO FKTsB). <BR>According to the FKTsB, emissions can only last one year, and accounts should be presented within a month of the emission ending.<BR>Emissions could be declared illegal by a court on the initiative of the registering organisation (RO FKTsB). According to RO FKTsB Acting Manager Yury Devyatov, they are ready to start such proceedings.<BR>Shares distributed before the Securities Market Law was passed can be declared 'not emitted' even more simply: by a ruling of the FKTsB. After share issues have been invalidated, the shares must be removed from circulation. The nominal share price must be returned to buyers.<BR>So far, the RO FKTsB has not applied such serious measures to any share issuers, restricting its elf to sending notifications and establishing deadlines for it's requests to be met.