Pašk Kačinari's counterproposal

Pašk Kačinari submits shareholder counterproposal to the ZABA Board proposal to approve capital increase of basic ZABA capital in favor "Bank Austria" through a new share emission. Shareholder Kačinari points out that there is no legal basis for a new share emission and a capital increase of basic ZABA capital. ZABA does not know what makes up its basic capital, as it has neglected to issue shares to the following shareholders: the Republic of Croatia, The Republic of Serbia and the City of Zagreb. The Republic of Croatia claims rights on the basis of legal succession to its non-privatized state capital in the Republic of Croatia. As ZABA has never undergone any process of transformation and privatization, it is obvious that, on this basis, the Republic of Croatia is a shareholder on that basis. The Republic of Serbia has rights to shares based on the fact that ZABA came about by a merging of the former “Jugobanka” bank in Croatia with “Kreditna banka Zagreb” bank, which in turn was formed out of the “Gradska štedionica” savings bank, the City of Zagreb’s community bank. Out of this fact also extend the City of Zagreb’s claims to shares of ZABA. Shareholder Kačinari in his counterproposal further underlines that ZABA did not report share capital for this property, nor did it issue corresponding shares for it. Thus, warns Kačinari, there are legal grounds for invalidating the registration of the bank itself, as per the invalidation of the registration of "Pivovara" d.d., Osijek. It may be concluded from the above that it is too early to speak of a capital increase and a new share emission, until the ZABA shareholder register can be brought to legality.