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Yushchenko Vetoes Bill Cutting Shareholder Meeting Quorum To 50%

Yushchenko Vetoes Bill Cutting Shareholder Meeting Quorum To 50%

6 November 2008

President Viktor Yushchenko on Friday vetoed a bill recently adopted by parliament that would have reduced the minimum quorum for shareholder meetings to 50% plus one share, from the current minimum of 60% plus one share. Yushchenko’s press service said the law would have allowed companies to disregard minorities while also increasing their vulnerability to corporate raids. Yushchenko’s chief of staff said the president would only support such a change as part of a broader reform of corporate governance legislation. Tom Warner: Yushchenko’s real motive was to defend particular companies including Ukrnafta (UNAF: SELL) against management takeovers by business groups linked to the Regions party. Since Yulia Tymoshenko and her bloc strongly opposed the bill, an override of the president’s veto is unlikely. If the Regions party is persuaded by this to support broader corporate governance reform, that could be good.

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