The Parliament of Ukraine supported the first reading of investor protection.
The Verkhovna Rada has strengthened the protection of investors’ rights, supporting the draft law №2259 «On Amendments to Certain Legislative Acts of Ukraine concerning the protection of investors». For a decision voted 239 deputies.
As noted in a memorandum to the project, its purpose, on the one hand, is the deregulation of business of the company, and on the other – the introduction of higher standards for public companies whose shares are included in the stock register.
«This deregulation will allow Ukraine to increase the position in Doing Business rating and make joint-stock companies attractive for investment. Meanwhile, the increased requirements for public companies will enhance the protection of minority investors in Ukraine and significantly bring Ukraine closer to meeting the requirements of the Association Agreement between Ukraine and the EU» – the document says.
In particular, it is intended to raise the level of investor protection through:
– introduction of a derivative action (minority shareholders’ rights to sue in the public interest for damages);
– introduction of the accountability of officials of economic entities in the event of injury to the company by their unlawful actions;
– establishment of procedures for recognition of the transaction made by a person to be invalid, and the return of profits earned as a result of such transaction;
– provision of the applicant’s right to receive compensation from the society of their expenses in connection with the court case on the claim to the official company for reimbursement of damages caused to the company – within society amounts actually received;
– creation of conditions for the transition of quasi-public companies in the private form;
– the introduction of «independent directors» who will represent the interests of minority shareholders in public companies;
– establishment of detailed regulation of related party transactions which will take into account the interests of all shareholders.
