The Netherlands Supreme Court has thrown out calls by activist investors for an investigation of boardroom practices at ASM International, the Dutch semiconductor company.

Judges overturned a ruling by a lower court, which had ordered an investigation at the behest of two shareholders, Hermes Focus Asset Management and Fursa Alternative Strategies.

In August 2009 the Enterprise Chamber, the part of the Dutch appeals court that deals with corporate disputes, ruled that ASMI was not giving its external shareholders sufficient opportunity to influence strategy and corporate governance.

But the country’s highest court ruled on July 9 that the chamber had based its decision on an incorrect legal interpretation of the way a company’s management has to perform.

Hermes and Fursa have long battled with ASMI over the company’s performance and its management practices. It called for an investigation last year when the company issued new shares to a foundation linked to management.

But the Supreme Court ruled that “ASMI’s board did enter into dialogue with Hermes and Fursa, discussed the arguments raised, and rejected them with well-substantiated and defendable arguments.”

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