Transparent corporate governance is the key to the stability of state-owned enterprises

A panel discussion was held on the challenges and prospects for the development of corporate governance in Ukraine, where, in particular, issues related to the practical implementation of the Law of Ukraine No. 3587-IX and the OECD principles in the activities of state-owned companies, the limits of the owner’s powers, and the independence of supervisory boards during martial law were discussed.

Speaking at the event were Maxym Libanov, NSSMC Commissioner; Oleksandr Lysenko, an independent corporate governance consultant and Member of the PAKU (Corporate Governance Professional Association) Board of Directors; Roman Bondar, senior partner at Korn Ferry; Chairman of the Board of Directors of PAKU and founder of the Ukrainian Institute of Corporate Governance Oleksandr Okunev, as well as partner at Vasyl Kisil & Partners Law Firm, and Member of the Board of Directors of PAKU Volodymyr Igonin.

NSSMC Commissioner Maxym Libanov emphasized that the legislative amendments of year 2024 laid the foundation for corporate governance reform. According to him, in practice, the implementation of innovations in state-owned companies is not complete: not all companies have “letters of expectations” from the state, which creates a vacuum in the activities of supervisory boards.

“The amendments that were made to legislation, particularly to the law on the management of state property at the beginning of 2024, are fundamental and probably represent a point of no return. The problem traditionally lies in the practical implementation of these innovations. Not all companies have gotten letters of expectation from the state, and as a result, even where supervisory boards have been created, there is a vacuum in moving forward. But this is not interference in operational activities, since state property policy only determines strategic directions, not the specific management of the company,” he noted.

As a result of the discussion, participants concluded that in order to maintain the institutional stability of strategic enterprises, it is necessary to combine the operational management of state assets with adherence to the principles of transparent corporate governance and ensuring the independence of supervisory boards.

It was also noted that in 2026, reporting on the state of corporate governance based on the results of 2025 would be introduced for the first time: a corporate governance report as part of a joint-stock company’s annual report is to be submitted by 30 April 2026.