New Law Lowering Quorum At Shareholder Meetings Heads To Rada

Yesterday the Rada Economic Policy Committee put forward a law lowering quorum at shareholder meetings from 60 to 50+1%. Rada Speaker Alexander Moroz said he hoped to vote on the law on Wednesday. Nick Piazza: This is not the Rada’s first effort to come up with a law to lower quorum. Last November the Rada sent a law to the President that would have lowered quorum to 50% and he vetoed both it and an amended version put forward in January.  Following the second veto Yushchenko said that he did not want to see an amended version of an old law but a new law that would usher in broader reform of corporate governance legislation and guarantee minority rights.  The current political turbulence makes it unlikely that this law will move forward very quickly or receive the President’s support, however it is certainly something to be watched as the summer progresses. The ruling coalition’s efforts to push through a law that would lower quorum are largely viewed as the government’s attempt to wrest control of Ukrnafta where the state owns 50% plus one share from Privat group which controls 42%. Other listed companies that could be effected include Kiyvenergo (state owns 50% plus one share, city together with the Vasyl Khmelnitsky group >40%), ZaporizhCoke (SCM and ARS own >50%, Zaporizhstal group >40%), and several Oblenergos. The bill could also affect the long-running conflict at Kyivstar, where Norway’s Telenor owns 53.5% and Russia’s Alfa Group 46.5%.