Private investor in groundbreaking case is suing Suwary directors

Following charges made by the Warsaw and Łódź prosecutors against board members of publicly listed Suwary, a company specializing in the production of plastic packaging, Kazimierz Żmudzin, a private investor who owns 43,300 of the company's shares, is suing the top company directors to make them compensate the enterprise zł. 5.35 million from their own pockets. "This is the first case of its kind on our market," said Michał Stępniewski, spokesman for the Securities and Stock Exchange Commission. Members of Suwary's supervisory board stand accused of having acted against the interests of the company. According to the prosecutor, company president Henryk O., purchased over 50% of shares in Suwary Packing, where he was also president, for zł. 105,000 in December 2001. On the same day, Suwary agreed to lease the most important production facilities and several buildings for 15 years to Suwary Packing. In the event the agreement was violated, Suwary was obliged to pay zł. 85,000 for each day of the remaining unfulfilled part of the 15 year period. (Parkiet, p.1; Gazeta Wyborcza, p. 26) A.K.