Sinovac Biotech's board election upheld by Antigua and Barbuda court decision
Sinovac Biotech reported that the High Court of Justice of Antigua and Barbuda rejected the claim of 1Globe Capital for a declaration that an alternative slate of directors had been elected at the company's Annual General Meeting in February. The Court's decision means that the current directors of the company were validly elected at the Annual General Meeting held in February and remain the directors of the company. In denying 1Globe's claim, the Court found that a group of collaborating shareholders, including 1Globe, formed and executed a secret plan in advance of the AGM to take control of the company "in what appeared to be an ambush". The decision of the Court concluded that by failing to provide advance notice of the plan to nominate an alternative slate of directors at the AGM, the group prevented other shareholders from making an informed decision on the election of the company's directors. In addition, the Antigua High Court declared that the Shareholder Rights Agreement is valid under Antigua law. According to the Rights Agreement, if a triggering event occurs, the shareholders responsible for the triggering event will have their shareholdings diluted significantly.