EVIC -v- Greater Europe

This is an application by the plaintiff ("EVIC") to have the defendant ("the Fund") wound up under Article 155 of the Companies (Jersey) Law 1991 (as amended) ("the Companies Law") or for alternative remedies under Articles 141 and 143 (unfair prejudice) of the Companies Law. The key issue in this case is whether a Redemption in Kind proposal put forward by the Fund and approved by a majority of the shareholders at an EGM held on the 26 th July 2011 is in breach of the terms of the Articles of Association of the Fund ("the Articles") and the Prospectus.

The investment manager is Greater Europe Funds Management Limited ("the Manager") and the investment adviser is Wermuth Asset Management GmbH ("WAM") a company incorporated in Germany, the principal person behind which is Mr Jochen Wermuth, a banker and economist with extensive experience in investment in Russia.

Apart from a nominal number of ordinary shares held by the Manager, the share capital of the Fund comprises participating shares of which 27% are held by EVIC and 12.28% by or on behalf of Mr Wermuth and staff at WAM. The participating shares are not redeemable at the option of the holders. We will refer to the holders of the participating shares as "the shareholders".

EVIC is a special purpose company formed to enable wealthy clients of the Nomura Group in Japan to invest in the Fund through a structure that it is not necessary to detail. EVIC's investment is monitored by Nomura Funds Research and Technologies America Inc which we will refer to as "Nomura".

The Fund was launched on 29 th June, 2007, for the purpose of investing primarily in Russia and the former Soviet Union related countries. It is an "Expert Fund" suitable only for those who are "Expert Investors" as defined by the Jersey Financial Services Commission.