Improvement of corporate governance in state-owned and municipal companies
On 18 February 2016 Ukrainian Parliament passed the Law "On Introducing Amendments to Certain Legislative Acts regarding Management of State-Owned and Municipal Property" (Draft Law No. 3062), whereby a set of international corporate governance standards are established for the state-owned and municipal companies. As of the date, the Law has been addressed to the President of Ukraine for signing.
According to explanatory documents, the Law is aimed at optimizing the public economy sector, applying market governance mechanisms for state-owned and municipal companies and, therefore, minimizing political interference into operation of such companies.
It is anticipated that shifting reasonable balance between interference of the state as the owner and independence of corporate management bodies of state-owned and municipal companies in the course of decision-making on day-to-day business activities of such companies will effectively achieve the said aim. For this purposes the deputies proposed to establish in the state-owned and municipal companies the supervisory boards that will perform the function of an intermediary between the state and the management.