Olainfarm shareholder majority demand immediate resignation of council members Krastiņš and Velmers

The majority of JSC Olainfarm shareholders demand that Kārlis Krastiņš and Haralds Velmers resign immediately from the positions of Olainfarm Supervisory Council members in connection with the loss of trust and new circumstances related to the possible fraud case with Olainfarm shares.

The shareholders had already sent a written request to both council members to resign at the beginning of May, but received a reply that neither K. Krastiņš nor H. Velmers are planning to do so. As it is known, the members of the Supervisory Council represent the interests of shareholders between shareholders' meetings and manage the company in the interests of the shareholders, thus Krastiņš and Velmers' actions have resulted in two members of the Supervisory Council no longer having the trust of the majority of the shareholders who should therefore leave the post immediately.

The position of a member of the Supervisory Council is an elected position, and it is the very shareholders who previously elected Krastiņš and Velmers to the Supervisory Council, who have now requested their immediate resignation due to a loss of trust after receiving information about their involvement in the possible fraud.

Shareholders do not understand the actions of both members of the Supervisory Council when, after a clear indication of a loss of trust, they try to hold on to their positions and continue to receive excessive remuneration in a situation where the majority of shareholders are against it. In addition, Krastiņš and Velmers boycotted the last council meeting, preventing important decisions for the development of Olainfarm from being made. This is not appropriate for a fair and professional corporate environment.

The shareholders have also received information that H. Velmers and K. Krastiņš had flown abroad only a few days before the large-scale attempt to commit fraud, on April 22, to possibly meet with the Czech citizens who were later detained at the Riga Airport on April 30 in connection with possible involvement in the fraud case.

Currently, the shareholders have addressed Gundars Bērziņš, Chairman of the Supervisory Council of Olainfarm, with a call to prevent H. Velmers and K. Krastiņš from further participating in the work of the Supervisory Council, and with a call to ensure that their resignation is achieved.

The Board of Olainfarm will also convene a shareholders' meeting on June 17 this year, when it is planned to hold elections for select members of the Supervisory Council of Olainfarm in connection with the loss of trust from the majority of shareholders. As previously reported, the shareholders, who were previously at odds after the death of Valērijs Maligins, have decided to choose a common representative and want to jointly manage the company in the future, rather than involving those who have lost the trust of shareholders.