First Deputy Prime Minister and Minister of Economy of Ukraine Yuliia Svyrydenko explained the approaches to the formation of supervisory boards within the framework of public sector corporatisation.

“Independent members of the supervisory board are appointed through a competition. A recruiting company is chosen to select the members of the supervisory board. Its tasks include creating profiles and requirements for candidates for the supervisory board, selecting applicants and preparing a list of candidates,” said Yuliia Svyrydenko in a special project of LIGA.net on the reform of state property management. The First Deputy Prime Minister cited Energoatom as an example, where the process of appointing a supervisory board was underway.

Yuliia Svyrydenko added that the requirements for candidates were approved by the Committee for the appointment of heads of enterprises of particular importance to the economy, which included representatives of government agencies and international organisations: the EBRD, the International Finance Corporation (IFC) in Ukraine, the EU Delegation to Ukraine, and the Business Ombudsman’s Office.

In the course of the reform, strategic state-owned enterprises will be reorganised into joint stock companies or LLCs with the introduction of a corporate governance system. Their management will be overseen by members of an independent supervisory board, and the board’s performance will be evaluated by the governing body. The aim of these steps is to transform state-owned enterprises into efficient, competitive and investment-attractive companies.