National Securities and Stock Market Commission (hereinafter referred to as NSSMC) approves the Decision to introduce corporate governance in the “Stock Market Infrastructure Development Agency of Ukraine” (SMIDA).
For the first time, a one-tier board system will be set up with the main governing body - the board of directors, which will include executive and non-executive directors. Currently, the legislation provides for the creation of an exclusively two-tier corporate governance system and does not require the mandatory creation of a board of directors in companies of a different type, other than public joint stock companies.
“We have analyzed the worldwide practice of corporate governance and we see that many jurisdictions allow companies to choose which model to use - one-tier or two-tier. We are currently preparing changes to legislation that will introduce a new type of corporate governance system - one-tier boards. There is a market request for a simplified management model, and we have the appeal of many participants. The one-tier model is an opportunity to work comfortably, reduce administrative costs, and improve coordination of management bodies. We have also decided to work out this approach on the basis of SMIDA», - commented the decision of the regulator Maxym Libanov, Member of the NSSMC.
To help balance the interests of participants, SMIDA will also create a participant council, which will include all stakeholders holding the Agency's disclosure services.
“This will be an effective platform for discussions and understanding of information technology, the introduction of an appropriate level of information security, technological development of information dissemination and processing facilities, and more. With the introduction of new standards for disclosure, we understand that it will be some time when our financial market will be of interest to system investors and international news agencies. Therefore, SMIDA will play an important role in the information services market for some time, providing an appropriate level of information support. For this purpose, we strive to ensure transparency in the Agency's activities, including transparency in management, technological processes, pricing of our services, etc. ”, - added Igor Dobrovan, Director of SMIDA.