WEH sue to freeze share and prepare to enter an arbitration proceeding to enforce a retransfer of all shares

WEH sue to freeze share and prepare to enter an arbitration proceeding to enforce a retransfer of all shares

“Golden Music” or GML, one of the major shareholder of Wind Energy Holding Company Limited or WEH, prepares for submission to the arbitration so that Mr. Pradej Kitti-itsaranon transfers 13% of WEH’s shares back to GML after he breached the contract and defaulted on share payment. Despite that Golden Music has legally terminated the agreement, Mr. Pradej Kitti-itsaranon still refuses to retransfer the shares and yet uses the shares’ voting right for his benefit during the WEH shareholders meeting on 10^th September, which was unfair to GML.

To reserve the rights and interests of the Company, GML has filed a petition to the Civil Court for an emergency injunction before submitting the dispute to the arbitration as to have a court order prohibiting Mr. Pradej Kitti-itsaranon from exercise his voting rights on such shares until the arbitration is concluded. This includes a ban on transferring, selling, manipulating, disposing, or creating encumbrances, as well as requesting to freeze the shares.

Petitioning to the Civil Court for a temporary injunction is a significant proceeding that is commonly use. Since in some cases, if the court has not ordered for a temporary injunction from the beginning, the case result may not benefit the litigant at all. It is also the case for this dispute if there is no request to the court for a temporary injunction before the arbitration to prohibit a transfer, sell, manipulate, dispose of or create encumbrances as well as a request to freeze the shares and allow the disputed shares to be transferred. Even when the arbitral award is rendered, it is no use for the claimant as the shares will have already been transferred and will then be challenging to retransfer. Therefore, in these kinds of cases, seeking a temporary injunction is a favored method to protect the rights and interests of the disputing parties.

However, the request for a temporary injunction is a process that can be requested during the arbitration process. If the disputing party sees that there is a suspicion or require a temporary protection from the court, they can make a request to the competent court. Nevertheless, since the court has not yet conducted a hearing for the GML ‘application, therefore, the news of this case must be followed continuously.

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