Archive for April 2015

On April 7, 2015 Verkhovna Rada of Ukraine adopts Law “On introduction of amendments into some legislative acts of Ukraine as to protection of investors’ rights” (No. 2259).

The Law envisions enhancement of protection of rights of investors through:

– introduction of minority investor’s right to appeal in interests of enterprise in compensation of losses;

– introduction of responsibility of officials of economic entities in case of inflicting losses to economic entities as a result of their illegal actions;

– introduction of procedure of recognizing the contracts carried out by the person as invalid and return of income obtained in such a contract;

– enabling appealers to receive compensation from economic entity for losses the appealers suffered as a result of judicial consideration of the case opened upon their appeal against an official of the economic entity aimed at compensation of losses inflicted to the economic entity — the amount of the compensation should be within the actual amount of losses inflicted to the economic entity;

– arrangement of conditions for conversion quasi-public joint-stock companies into private companies;

– introduction of the institution of “independent directors,” who will represent interests of minority stockholders at public joint-stock companies;

– introduction of detailed settlement of contracts of interest that would take in account interests of all stockholders.

“The risk” for banks is in “the revised criteria” of the definition of the persons related to the banks’, considers Vitaliy Kolesnikov, attorney at law of Pavlenko Legal Group.
National Bank was authorized to define the legal entities and individuals related to the banks not only on the basis of formal criteria, but also taking into account the nature of the relationships, transactions and the availability of any other links with the bank.

Today, on April 2, 2015, the President of Ukraine signed the Law No. 191-VIII “On amendments to several legislative acts of Ukraine resimplifying conditions for conducting business (deregulation)”, adopted by the Parliament on February 12, 2015.