Parliament endorses corporate governance reform for state-owned enterprises

Parliament endorses corporate governance reform for state-owned enterprises

The Verkhovna Rada of Ukraine has endorsed the bill “On Amendments to Certain Legislative Acts of Ukraine on Improving Corporate Governance of Legal Entities in Which the State is a Shareholder (Founder, Participant)”.

The relevant statement was made by the Ukrainian Economy Ministry, an Ukrinform correspondent reports.

According to the ministry, it is a key stage for the reform of state-owned enterprises, as the bill improves the corporate governance conditions, strengthens the role and responsibility of supervisory boards, and brings the Ukrainian legislation closer to the standards of OECD countries, taking into account the martial law.

“The law regulates many issues that will allow enterprises to operate clearly for society, investors and international partners. Supervisory boards are given more powers to work, but also more responsibility. The government gets tools to control supervisory boards. The adoption of the law was one of the Economy Ministry’s priorities, because its implementation will allow us to attract more investment, promote the economic development and replenish the state budget,” Ukrainian First Deputy Prime Minister, Economy Minister Yuliia Svyrydenko noted.

The adoption of the above bill was among the prerequisites for joining the European Union and obtaining a tranche from the International Monetary Fund (IMF), as well as an indicator of the draft Ukraine Facility Plan. The bill follows the OECD principles to the extent that the martial law allows.

A reminder that, in the first reading, draft bill No. 5593-d was endorsed by the Verkhovna Rada of Ukraine in July 2021.

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