The court rejected the registration at the request of Zsolnay, which argued that two of its supervisory board members had ties to the company, presenting a conflict of interest, said Gertrúd Matusik. The board members have resigned, but Zsolnay “refuses to let them go”, she added.

The local council will appeal the decision, she said. Zsolnay’s majority owner, Bachar Najari, has complained that his company is “under attack” by parties who want to take over its business on the market for European Unionsupported building renovation. Zsolnay tiles and ornaments adorn many landmark art nouveau buildings in Hungary.

Officials of the local council of Pécs, which owns a minority stake in Zsolnay, have said the business is on the verge of bankruptcy and have already set up a company to take over its operation.

Republished with permission of Hungary Matters, MTI’s daily newsletter.