In March 2024, the Law of Ukraine “On Amendments to Certain Legislative Acts of Ukraine on Improving Corporate Governance” (the “Law”) came into force, which introduced revolutionary changes to the corporate governance system of state-owned companies, in particular, in terms of the powers and responsibilities of supervisory boards, namely:
- The exclusive competence of supervisory boards to appoint and dismiss the CEO, as well as to approve the company’s strategic and financial plans, was established.
- A new criterion for the independence of supervisory board members was introduced to ensure their financial independence.
- An exhaustive list of grounds for early dismissal of members of the supervisory board of a state-owned enterprise has been defined.
- A procedure for assessing the performance of supervisory boards of state-owned enterprises has been introduced.
- Changed the rules for deducting a share of profits used to pay dividends.
- Requirements were set for the adoption of a top-level state ownership policy and owner’s expectation lists.
On June 26-27, 2024, a seminar was held on the topic “New Law on Corporate Governance of State-Owned Companies”.
The speaker at the seminar was Oleksandr Lysenko, CGPA Board Member and co-author of the Law.
During the seminar, the following issues were discussed:
- key changes in the work of the supervisory boards of state-owned companies in the “was vs. became” format
- creation of a comprehensive, adequate and effective internal control system – a new area of responsibility of the supervisory board of state-owned companies;
- key changes at the level of the owner in the “was Vs became” format;
- a list of bylaws to be adopted to implement the Law;
- practical advice on bringing internal documents of companies in line with the requirements of the Law.
If you were unable to attend the seminar, you can purchase the recording by filling out the form here: https://forms.cgpa.com.ua/crm_form_5yyou/?ts=1720087742