On 9 November 2016, the Cabinet of Ministers adopted a comprehensive reform
package of governmental regulations regarding independent supervisory boards in
state-owned companies (the “Regulations”).
The Regulations are aimed at bringing the procedure for the establishment
of independent supervisory boards in state-owned companies (“SOEs”) into
compliance with the recently adopted Law on Corporate Governance of State-Owned
Enterprises and Municipally-Owned Companies (the “Law”) (for more
information about the Law please refer to our previous Law-Now on this matter).
The Regulations mainly determine the procedures for:
- the creation of independent supervisory boards in Ukraine’s SOEs;
- the transparent nomination and election of supervisory board members,
including:
- the recruitment of qualified candidates to
become independent board members; and
- the appointment of state representatives
to supervisory boards;
- the control of ongoing matters with respect to internal audit, compliance,
anti-corruption and risk management; and
- the approval and revision of strategic goals for SOEs.
The establishment of independent supervisory boards in SOEs is believed to
minimise the risk of political interference with SOEs’ operations, as well as
to create the legal framework for professional management of SOEs that are in
the interests of the state.
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