The National Securities and Stock Market Commission is working on a new Corporate Governance Code. The first version of the document (1.0) was presented to international experts during the second meeting of the International Advisory Group on Corporate Governance in Ukraine.<\/p>\n
The Commission is developing the Code in collaboration with Ukrainian and international experts, with support from the European Bank for Reconstruction and Development. The meeting was organized by the Organization for Economic Cooperation and Development with support from Switzerland. NSSMC Commissioner Maksym Libanov represented the NSSMC at the meeting.<\/p>\n
The new Code must take into account amendments to Ukrainian legislation, the OECD\u2019s updated corporate governance principles, and current international practices. There are also plans to extend its scope to a wider range of companies. In addition to those whose shares are publicly traded, the draft will include recommendations for public-interest enterprises, including large private companies, financial institutions, and state-owned enterprises.<\/p>\n
The new Code will not reiterate requirements that companies are already obligated to follow. In contrast, it will offer additional recommendations for better corporate governance. A company may choose not to follow them, but in that case, it must explain why it is not doing so.<\/p>\n
The draft consists of five sections:<\/p>\n
\u2022 principles of corporate governance;
\n\u2022 shareholder rights;
\n\u2022 the supervisory board and the executive board;
\n\u2022 sustainable development and long-term value;
\n\u2022 information disclosure and transparency.<\/p>\n
The section on sustainable development is new to the Ukrainian Code and incorporates the approaches set forth in the updated OECD principles.<\/p>\n
During the meeting, international partners generally gave a positive assessment of the document\u2019s structure and content, but suggested revising certain provisions.<\/p>\n
In particular, they discussed the independence of the supervisory board. The first draft calls for at least one-third of the board members to be independent and for there to be no fewer than two independent directors. Experts noted that this recommendation merely reiterates the minimum already established by law and is less stringent than the recommendation in the current Code \u2014 at least 50% independent members. The drafters assured that they do not plan to weaken the requirements and promised to refine this provision in the next version of the document.<\/p>\n
The partners also discussed other provisions regarding the composition and operations of supervisory boards, gender representation, disclosure of information about directors\u2019 positions, and the balance between internal controls, risk management, and investor needs.<\/p>\n
Feedback from international experts will help refine the Code prior to its public discussion. It is important to the Commission that the Code not only comply with the law but also provide companies with practical guidance for implementing best practices in corporate governance.<\/p>\n
\u201cWe already have the first draft of the Code. After discussions and written feedback, we will prepare version 2.0, which will incorporate all comments and suggestions,\u201d<\/em> said Maxim Libanov.<\/p>\n International partners must submit their written comments by 15 October. After that, the drafting team plans to finalize Version 2.0 by the end of October. In November, the draft will be presented for public discussion with market participants. The Commission plans to finalize the Code in early December and approve it before Christmas.<\/p>\n Once work on the Code is complete, the International Advisory Group plans to move on to the next topic \u2014 the independence and capacity of the Commission as a market regulator.<\/p>","protected":false},"excerpt":{"rendered":" The National Securities and Stock Market Commission is working on a new Corporate Governance Code. The first version of the document (1.0) was presented to international experts during the second…<\/p>\n","protected":false},"author":367,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3,26,29,4,8],"tags":[],"class_list":["post-1184670","post","type-post","status-publish","format-standard","hentry","category-golovn-novini","category-korporativne-upravlnnya","category-mzhnarodne-spvrobtnitstvo","category-news","category-rozvitok-fnansovogo-rinka"],"_links":{"self":[{"href":"https:\/\/www.nssmc.gov.ua\/en\/wp-json\/wp\/v2\/posts\/1184670","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nssmc.gov.ua\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nssmc.gov.ua\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nssmc.gov.ua\/en\/wp-json\/wp\/v2\/users\/367"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nssmc.gov.ua\/en\/wp-json\/wp\/v2\/comments?post=1184670"}],"version-history":[{"count":2,"href":"https:\/\/www.nssmc.gov.ua\/en\/wp-json\/wp\/v2\/posts\/1184670\/revisions"}],"predecessor-version":[{"id":1184724,"href":"https:\/\/www.nssmc.gov.ua\/en\/wp-json\/wp\/v2\/posts\/1184670\/revisions\/1184724"}],"wp:attachment":[{"href":"https:\/\/www.nssmc.gov.ua\/en\/wp-json\/wp\/v2\/media?parent=1184670"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nssmc.gov.ua\/en\/wp-json\/wp\/v2\/categories?post=1184670"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nssmc.gov.ua\/en\/wp-json\/wp\/v2\/tags?post=1184670"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}