Yushchenko Vetoes Law Lowering Quorum for a Second Time

President Yushchenko vetoed a law yesterday that would have lowered quorum for shareholder meetings from 60% to 50% should shareholders fail to reach quorum in their first attempt. This was the Rada’s second attempt at getting a law to lower quorum past Yushchenko, on November 3, the President vetoed a similar law that would have automatically lowered quorum to 50+1% starting on January 1. Nick Piazza: This veto came as no surprise, as we said last time, in the President’s official proposed amendments to the first  law, Yushchenko said he would only support such a change as part of a broader reform of corporate governance legislation and if it would guarantee minority rights. The Rada’s second attempt contained neither.  At a briefing with the media the President’s office said that Yushchenko had sent the bill back, asking law makers to improve its protection of minority rights. The traded companies that could be affected include Ukrnafta (state owns 50% plus one share, Privat group >40%), Kievenergo (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%.