The Verkhovna Rada of Ukraine adopted a bill that introduces international standards of corporate governance for state-owned companies.

The Verkhovna Rada of Ukraine supported in the second reading the draft law # 3062 "On amendments to some legislative acts of Ukraine regarding management of state property". The bill is aimed to reform the system of corporate governance in state-owned enterprises in line with OECD standards and create mechanisms to protect companies from political interference as well as to ensure transparency and accountability of their activities.

“We shall correct the balance in the system of governance of state-owned enterprises and bring it closer to OECD standards. The state reserves the right of a shareholder, but the main powers on management of state-owned companies will be transferred from the ministries to independent Supervisory boards. An independent Supervisory board should protect the state-owned enterprises from political interference and to ensure their efficient, transparent operation in the interests of the citizens,” said senior adviser to the Minister of Economic Development and Trade Adomas Auditscas.

The bill allows the creation of Supervisory boards in state-owned and municipal unitary enterprises without corporatization (now Supervisory boards exist only in business associations). The list of companies in which the Supervisory boards must be established on obligatory basis and procedures for establishment of Supervisory boards will be determined by the Cabinet of Ministers of Ukraine and local councils.