The Verkhovna Rada of Ukraine adopted in the first reading draft law № 5593-d "On Amendments to Certain Legislative Acts of Ukraine on Improving of Corporate Governance of Legal Entities, the Shareholder (founder, participant) of which is the State". Today, July 15, 251 MPs voted for this decision.
The document was developed in cooperation with the EBRD and in accordance with the OECD Guidelines for Corporate Governance. The implementation of this bill will help improve the management of state-owned enterprises and will allow to fully introduce modern standards of corporate governance in state-owned companies.
"Corporate governance reform is one of the key priorities for the Government and the Ministry. Today’s decision of the Parliament is extremely important for the continuation of the reform, the main goal of which is to turn state-owned enterprises into efficient, competitive and investment-attractive companies," commented First Deputy Prime Minister of Ukraine Oleksiy Lyubchenko.
Thus, the bill provides for a clear separation of functions of the state as the owner and those of supervisory boards. In particular, the document offers the following:
∙ to provide the Cabinet of Ministers of Ukraine the authority to approve the State Property Policy;
∙ provide the Cabinet of Ministers of Ukraine the authority to determine the procedure for evaluating the work of supervisory boards of state-owned companies;
∙ empower supervisory boards to appoint and dismiss heads of state-owned companies. It is envisaged that the Government will approve the decisions of the supervisory boards on the appointment and dismissal of managers of state-owned companies, the management functions of which it performs;
∙ determine that the supervisory board, on the basis of the state dividend policy, submits to the management entity proposals for the approval of dividends;
∙ determine that the remuneration of the supervisory board and the executive body is carried out in accordance with the Remuneration Policies approved by the Cabinet of Ministers of Ukraine, etc.