Ukraine has strengthened the protection of investors rights.
The Law of 04.07.2015 number 289-VIII «On Amendments to Certain Legislative Acts of Ukraine on protection of the rights of investors.”
The law aims to deregulate economic activity of joint-stock companies and introduce high standards for public companies whose shares are included in the stock register.
The document provides for raising the level of protection of investors’ rights at the expense of innovation – a derivative action, ie the rights of minority shareholders to sue in the public interest for damages, the introduction of the responsibility of officials of economic entities in the event of damage to society of their unlawful actions. Post a lawsuit is the right of any minority shareholders who own at least 10% of the share capital.
The order of formation of the supervisory boards of joint stock companies are also subject to change, which is specified in the law. Under the new rules, only a natural person can become a member of the Supervisory Board. In the case where a member of the Supervisory Board elected as a representative of a shareholder, then to change its shareholder representative no longer requires the General Meeting of the company.
Another important innovation is the introduction of the institution of independent directors, ie those persons who will represent the interests of minority shareholders in public companies.
In particular, an independent director may not be a person who has been or is in the past five years, an affiliate of the shareholders and/or the company or its subsidiaries and/or officer of the company or its subsidiary; there has been during the past year significant business relations with the company or its subsidiaries; He is a close family member of an executive or managing director or of persons in the situations referred to in those requirements.
