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Among the Foundation’s priorities in the project Economic Reforms Agenda is the refinement of Ukrainian business laws. In 2008, the Foundation for Effective Governance in partnership with the Verkhovna Rada Committee on Economic Policy took part in developing the Law of Ukraine On Joint-Stock Companies adopted by the Verkhovna Rada on 17 September 2008.
Most businesses in developed countries operate in form of joint stock companies. Civilized corporate relations play a great role in development of the whole economy. They improve country's investment climate, favor stock market development and foreign investment inflow. Investors, management, and employees benefit from such law. Eventually, a company that operates effectively makes higher tax payments and creates more new jobs.
The new law was developed thanks to joint efforts of Ukrainian and foreign experts, reputed lawyers, representatives of business, and members of Parliament representing various political forces. Overwhelming number of experts agree that the law will help rationalize corporate relations in Ukraine, make them more transparent, and bring them closer to international practices.
To protect minority shareholders' rights the law guarantees participation of minority shareholders in general meetings of shareholders of JSCs and strengthens financial protection of the minority shareholders' share investments. For example, the law provides for an exhaustive list of reasons for non-admittance a shareholder to a general meeting, introduces requirement to hold a general meeting in a place where the company is located, ensures shareholders' right to sell their shares to a holder of controlling stake at a price not lower than market price.
The Foundation will further support legislative initiatives contributing to improvement of business environment in Ukraine.
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Foundation for Effective Governance
23F Kudrjavska Street Kiev 04053, Ukraine
Reception: +380 44 501 41 00 PR Department: +380 44 501
41 07 Fax: + 380 44 501 41 05
e-mail: feg@feg.org.ua |
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