The Parliament re-adopted the law on corporate governance in state enterprises.
The Parliament adopted a corresponding bill №3062 the president’s proposal.
Verkhovna Rada passed a bill to re №3062 on corporate governance in public enterprises. For the adoption of the bill voted 289 deputies at the minimum required 226.
The law introduces new rules for the supervisory boards with a majority of independent members in the largest state-owned enterprises, which should create mechanisms to protect state-owned companies from political interference and to ensure transparency and accountability of their activities. The law also will create a supervisory board in state and municipal unitary enterprises without a corporatization. The list of companies in which the supervisory boards to be established on a mandatory basis and procedure for the establishment of supervisory boards will determine the Cabinet, and local councils.
The law establishes the criteria for the independence of the members of the supervisory boards of state-owned enterprises (they can not be civil servants), cancels the job to vote for members of the supervisory board of state-owned enterprises, regardless of their form. From now on, all the members of the supervisory boards – independent and representing the interests of the state – will make their own decisions when voting at meetings of the Supervisory Board.
In addition, the Supervisory Board will coordinate the strategy and the annual financial plan, appoint and dismiss the heads of enterprises, set the size and terms of payment of remuneration, to form the internal audit unit. They will carry out the selection of an independent external auditor, to take the decision on the important operations.
In order to improve the transparency of state-owned enterprises provides that the annual accounts of state companies subject to mandatory independent audit. The list of companies for which an audit is required, and the criteria for hiring an independent auditor will be determined by the Cabinet of Ministers – for state-owned enterprises and local councils – for utilities.
