Bill on protection of investors' rights adopted

Aimed at improving the investment climate and image of Ukraine, the Verkhovna Rada supported the draft Law on protection of investors ' rights (registered under № 2259 from 27.02.2015) drafted by the Ministry of Economic Development.

The bill stipulates increasing the level of protecting investors' rights by introducing derivative action, i.e. establishing the right of a minority shareholder to sue a file on the damages in the public interest, as well as introducing the institution of "independent directors" who will represent the interests of minority shareholders in public joint stock companies. In addition, it is assumed detailed regulation of related party transactions, which will take into account the interests of all shareholders and impose higher requirements for public companies which shares are included in the exchange register.

Moreover, it is obliged to release information about a deal and requirements as to engagement of an independent auditor in order to conduct the evaluation of a deal.

The draft law will facilitate the harmonization of Ukrainian legislation with the European Union one. The bill prescribes an increase in the level of protecting investors' rights by creating favorable conditions for doing business in Ukraine and a precondition for the improvement of Ukraine's position in the Doing Business ranking.