05.05.2015 11:05
Category: News
A year and half after VZMD, the Pan-Slovenian Shareholders’ Association and Better Finance member, filed an official complaint denouncing the expropriation of investors in Slovenian banks as unconstitutional, the District and Higher Courts of Slovenia both finally acknowledged their arguments.
Following this acknowledgment, the District Court in Ljubljana filed a request at the Constitutional Court of the Republic of Slovenia for a review of the constitutionality of certain legal provisions, indicating that “it judges that the disputed legal provisions pose a disproportionate violation of private property”.
The Higher Court in Ljubljana followed suit and stated that these provisions “entail a severe violation of existing entitlements thus contradicting the principles of legitimate expectations”, at the same time questioning “whether such drastic violation of private property is truly proportionate to the public benefit pursued by the measures”.
The case is now in the hands of the Constitutional Court and proceedings are suspended until a final decision is reached on whether the Banking Act is constitutional or not. Since this decision is heavily dependent on the findings of the EU Court of Justice, VZMD contracted an expert in EU law to help prepare written standpoints for the oral hearing in Luxembourg.
Expropriated bondholders and shareholders of the banks concerned can contact VZMD to join the ongoing proceedings.
Watch a short video covering the issue for more information.