Dostihovy spolek shareholders reject a proposal to raise capital

The General Meeting on December 15th of Dostihovy spolek, organisers of events at Pardubice racecourse, ended as expected in deadlock. The Town of Pardubice, the majority shareholder with a 51% holding, proposed that new capital be raised by the shareholders to strengthen the Association’s ability to run the racecourse. However, a two-thirds majority was needed in order to enforce this proposal, and the smaller shareholders opposed it.  It is understood that the accumulated deficit of Dostihovy spolek is 10.2 million crowns (about EUR 400 000), which more or less corresponds to Dostihovy spolek’s current basic capital.

It is not clear where we go from here. The likelihood that the Association will go into liquidation is presumably now increased. It seems sure that a new organisation could be found to take over management of the racecourse, for example the organisation headed by Josef Vana (see the article that appears below this article).

There is no suggestion that the Velka Pardubicka and racing at Pardubice racecourse would be put under threat by the demise of Dostihovy spolek. Indeed, Dostiovy spolek has been in such disarray for a long time, and especially in the last two years, that the introduction of new management of the racecourse would be widely welcomed by the racing community.