Akhmetov Ally Proposes to Weaken 40% Stakes.

Yuri Voropayev, a Regions MP close to Systems Capital Management owner Rinat Akhmetov, has proposed a draft law that would eliminate the ability of owners of 40% stakes in companies to block shareholders’ meetings. Tom Warner: This would be a welcome change although we would prefer to see it in a package with other changes strengthening protections of minority shareholders. The 40% rule is often abused as a tactic to harass the controlling shareholder, such as at Kyivstar, or as a means for a large minority shareholder or group of shareholders to effectively control a state-owned company and render privatization difficult, such as at Ukrnafta (UNAF: HOLD) and Kievenergo (KIEN: BUY) (see news item below). Another example is Ukrnaftoproduct, a state holding company with stakes in petrol retailers. A private investor owns more than 40% of the company, and the State Property Fund was yesterday unable to sell the state’s stake of 50% + 1 share.