Legal Action Threatened In Poland Against Michelin

A report in the press says that some shareholders in Polish tyre manufacturer Stomil Olsztyn are willing to take legal action against Michelin for what they allege are abuses of minority shareholders’ rights. A Shareholders’ meeting is scheduled for 7th March, at which the disaffected group is set to demand the appointment of an independent auditor to look at the financial links between Stomil (of which Michelin owns 59 per cent) and Michelin. The report also says that damages will be sought for what is said to be “irregular settlement of commercial relations” between the two companies.

It is alleged that exports from the Polish factory to other Michelin facilities are invoiced at prices less than the market rate, and that Stomil pays Michelin a commission for goods sold through the latter’s distribution network. A Michelin spokeswoman is quoted as saying that the commission was established when Michelin took its initial stake in Stomil and was agreed with the state treasury, covering such areas as technical help and royalties. Last week, Poland’s Supreme Administrative court gave a ruling upholding the company’s pricing policy, added the spokeswoman.