Rada Sends Another Law Lowering Quorum To 50% To President

The Rada passed a new version of a law yesterday that will lower quorum for shareholder meetings from 60% to 50% should shareholders fail to reach quorum in their first attempt. Nick Piazza: This is 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 from January 1. In the President’s official proposed amendments to the 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. We see no sign of broader corporate governance reform or greater protection of minority rights in the new version of the law, and given it received less support this time (237 votes) than last time (241), unless the President has had a major change of heart this law is likely to be shot down too.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%.