On March 21, the Cabinet of Ministers of Ukraine passed a resolution "On Establishment of Joint Stock Company "Ukrainian Defence Industry", which provides for the reorganisation of the Ukroboronprom State Concern into a joint stock company in accordance with Article 3, paragraph 1, of the Law of Ukraine "On Peculiarities of Reforming State-Owned Defence Enterprises".
The draft resolution was presented at the Government meeting by Oleksandr Kamyshyn, Minister for Strategic Industries of Ukraine.
The purpose of the document is to establish the Ukrainian Defence Industry Joint Stock Company, 100 per cent owned by the state, as well as to approve the company's statute and the Regulation on the Supervisory Board of the joint stock company.
Establishing a legal successor to Ukroboronprom State Concern in the form of a joint stock company will facilitate the introduction of a corporate governance model in the defence industry, in line with the recommendations on corporate governance of business entities of the Organisation for Economic Cooperation and Development. This will also create the preconditions for increasing the competitiveness of defence industry enterprises as well as create conditions for attracting investment in the defence industry.
In accordance with paragraph 6 of Article 3 of Section II of the Law of Ukraine "On Peculiarities of Reforming State-Owned Defence Industry Enterprises" and paragraph 1 of the Statute of the Ukrainian Defence Industry Joint Stock Company, the joint stock company is the legal successor of all rights and obligations of Ukroboronprom State Concern from the date of its state registration.