High Administrative Court of the Republic of Croatia Confirms the Ruling of the Administrative Court: The Decision of HANFA Against Nexus is Annulled

The Croatian Financial Services Supervisory Agency (HANFA) issued a decision on January 11, 2018, revoking the management of two alternative investment funds of venture capital (Nexus FGS I and Nexus FGS II) from Nexus Private Equity Partners Ltd. (now Nexus Partners Ltd.) and the consent for the function of board members Marko Lesić, Krešimir Ružđak, and Marko Makek.

In February 2018, the company filed a lawsuit against the aforementioned Decision with the Administrative Court in Zagreb, in accordance with the arguments communicated multiple times to both HANFA and the wider public. By the ruling of the High Administrative Court of the Republic of Croatia on June 18, 2020, the appeal of the Croatian Financial Services Supervisory Agency was rejected, and the ruling of the Administrative Court in Zagreb from July 18, 2018, which annulled the HANFA Decision was confirmed.

According to the expressed position of the Administrative Court in Zagreb, confirmed by the ruling of the High Administrative Court of the Republic of Croatia, which annulled the Decision, the companies Nexus Investment Ltd. and KHA Four Ltd., as companies established in accordance with the Companies Act, provided secured short-term loans in accordance with all relevant legal regulations, as stated in the announcement. 

Additionally, it is emphasized that HANFA incorrectly applied substantive law in the disputed Decision, claiming that the provisions of the Law on Alternative Investment Funds and/or the Fund Rules would be violated, given that the same regulations, according to the highlighted positions of the courts, do not apply to the mentioned companies.

The previously mentioned rulings of the Administrative Court in Zagreb and the High Administrative Court of the Republic of Croatia, besides demonstrating the functioning of the rule of law, fully confirm the undisputed claims of the Company that the short-term loans provided by the trading companies Nexus Investment Ltd. and KHA Four Ltd. were granted in accordance with applicable positive legal regulations of the Republic of Croatia and that in the actions of the Company as the manager of the alternative investment funds of venture capital Nexus FGS I and Nexus FGS II, neither the Law on Alternative Investment Funds, the fund rules, nor the investment decisions were violated, it is concluded in the announcement.

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