Verkhovna Rada (Parliament of Ukraine) voted in the first reading for the bill #2259 “About the changes in some regulatory acts of Ukraine related the protection of rights of investors”. For decision, voted 239 deputies (needed 235).

As it mentioned in summary to draft, the goal is to deregulate the business operations of joint stock companies from one side, and implementation of more high requirements for open joint stock companies, which securities are listed on stock.

“Such a deregulation will allow Ukraine to increase the position in Doing Business rating and make joint stock companies more attractive for investors. Meanwhile, the increasing of requirements to open JSC will enhance the protection of rights of minor investors in Ukraine and vastly close the Ukraine to the implementation of requirements of Ukraine–European Union Association Agreement” – mentioned in document.

Particularly, the ways of enhancing the protection of rights of investors are proposed through:
– Implementation of derivative action (the right of minor shareholder to file action to company regarding indemnification.

– Implementation of responsibility of executives of companies in case of lesion to company by their wrongful acts

– Determination of conditions of adjudgement of deal, concluded by not real person, null and void, and return of profits, gained by results of such a deal.

– Implementation of institute of “independent directors” that will represent the interests of minor shareholders in JSC.

– Determination of detailed regulation of deals with interest that will take into account the interests of all shareholders.