The Todorić family changed its contracts with the company just 10 days before the appointment of the commissioner.
Agrokor’s Government-appointed Commissioner, Ante Ramljak, filed a lawsuit with the Commercial Court in Zagreb with regards to the three former members of Agrokor’s board of directors – Ivica Todorić, Ante Todorić and Ivan Crnjac – due to potential adverse impacts of an annex to their employment contracts with the company on its future business operations, reports Poslovni.hr on May 23, 2017.
The annex in question was signed on the 31st of March 2017, just ten days before the opening of the extraordinary administration procedure in Agrokor, and the potential realisation of the resulting rights from the annex could cause the company a substantial material damage.
The annex stipulates that Agrokor will pay for damages that former members of the board of directors might incur as a result of possible court, administrative, arbitration and other proceedings directed against them for acts and/or omissions committed while they were members of the board of directors. According to the annex, Agrokor would also have to bear all costs of the representation of former members of the board of directors, which includes the costs of attorneys, legal protection and expert advisers, as well as travel and other costs incurred in connection with such proceedings, until a final court verdict is made that they had acted contrary to the rules of conducting business, irrespective of the fact and the manner of termination of their employment contract.
After the opening of the extraordinary administration procedure in Agrokor on April the 10th this year, all members of the former board of directors were removed without any additional costs for the company. Except for Ivica Todorić, Ante Todorić and Ivan Crnjac, no other member of the board of directors or the supervisory board had a valid annex of the described content at the time when the extraordinary administration procedure was opened. All members of the board of directors and the supervisory board, with the exception of the former President of the supervisory board, Ivan Todorić, have signed an agreement with the company abandoning their possible financial claims based on the former employment contracts. Ivan Todorić’s employment contract was terminated unilaterally.
The Todorić family is still the majority owner of Agrokor, but currently has no management rights within the company.
