On January 3rd the President of Ukraine Petro Poroshenko signed a bill that aims to simplify regulations for conducting business activities and making investments. The law specifies that a corporation’s listing on a stock exchange is the sole criterion for its publicity, presidential press-service explained, reported by UNIAN.
“The law clarifies the issue of determining Ukrainian joint-stock corporations as either public or private entities based on formal principles. Also, the law eliminates inconsistencies in legislation and introduces European measures in the definition and regulation of public corporations,” it stated.
Particularly, the law’s provisions will change the approach to determining whether a joint-stock company is a public or private one. The law also revokes the requirement for a joint-stock company to specify its type in its title.
The law annuls the requirement for banks to operate exclusively as public joint-stock companies. Conversely, banks that are operating as private joint-stock entities are now subject to disclosure of information in keeping with requirements of public corporations. The document specifies upgraded norms for corporate governance, especially pertaining to the formation of supervisory boards and committees.
The law increases the scope of information and available means of its disclosure for public joint-stock corporations and banks, at the same time nullifying the requirement to publish this information in an official journal.
What concerns private joint-stock corporations, the law aims to reduce the amount of information to be disclosed. Furthermore, individuals are allowed to provide information services on the stock market along with the National Securities and Stock Market Commission and its agencies. Additionally, the law toughens the requirements in regards to the performance of supervisory boards and the election of their independent members, as well as it gives them more power.