MFCC shareholder company claims oppression

A company holding shares in Malta Fairs and Conventions Centre Ltd yesterday filed a judicial protest against 14 defendants, claiming it was being oppressed and holding them liable in damages.

Sign It Ltd filed its protest in the First Hall of the Civil Court against Malta Fairs and Conventions Centre (MFCC), Fairs and Exhibitions Ltd, Alfred V. Calleja, Paul Abela, Joseph Mifsud, Ian Mizzi, Joseph Tabone Jacono, Charles M. Mercieca, Raphael E. Micallef, Darren Dedomenico, George Demajo, Carmel V. Galea, Peter Grima and Paul Abela.

Sign It told the court that it had, together with Fairs and Exhibitions Ltd, formed another company, namely MFCC. It held 25 per cent of the shareholding in this company, while Fairs and Exhibitions held the remaining 75 per cent.

Both Sign It and Fairs and Exhibitions were contractually bound to transfer their assets to MFCC. An architect was to be appointed to value these assets and the valuation had been completed after much delay.

However, Fairs and Exhibitions had informed Sign It that it had met with the architect alone. This, said Sign It, was prejudicial to its interests, for the valuation had been discussed in the company's absence.

Furthermore, Sign It had discovered that Fairs and Exhibitions Ltd had leased to the Electoral Commission a substantial part of the assets which had been transferred to MFCC.

This meant that Fairs and Exhibitions Ltd had leased assets belonging to MFCC, and had competed with MFCC and in violation of the agreement entered into between the parties.

Sign It told the court that the actions of Fairs and Exhibitions Ltd were in violation of the agreement between the parties and a clear attempt on the part of Fairs and Exhibitions to impose its will upon Sign It.

It added that continuous pressure was being placed upon MFCC, and that the majority of directors were being influenced by the organisations they represented, namely the Federation of Industry, the Chamber of Commerce, the GRTU, the Society of Arts, Manufacture and Commerce, and TFEA. Illogical decisions were being taken and these were going to prejudice the income of this company and of Sign Itd.

The chairman of MFCC, Adrian Bajada, had resigned his post because of these circumstances and because of the pressure to which he was subjected by the Federation of Industry.

In its protest, Sign It told the court that the board of MFCC had approved a resolution forcing Sign It to lower the rates of rent for space at the International Fair of Malta.

This resolution was contrary to the company's budget which had been previously approved. It was, therefore, clear that Sign It, as a minority shareholder in MFCC was being oppressed.

Sign It concluded by protesting formally against all respondents and by holding them liable in damages.

Lawyer Adrian Camilleri signed the protest.